Increasing the profits of your business starts with a sound understanding of financial statements. The financial tool, along with other financial reports, is vital for properly managing your business activities, particularly as it concerns the following:
Guiding the day-to-day operating decisions of your business
Providing proper confirmation for figures used in tax returns
Providing financial records of past performance to facilitate bank loans
Source: https://www.chaudhrycpafirm.com/financial-statements/