A statement that has been reviewed and approved by a certified, independent auditor is known as a certified financial statement, and these statements are considered more reliable than unaudited statements and are mandatory for publicly traded companies. Besides external auditors, firms can also hire internal auditors, and financial statements that have not been audited by external, independent audit professionals are not considered certified.
Basics of financial statements
As per experts at tax accounting services, the Sydney balance sheet, income statement, and cash flow statement are some of the basics of financial statements. The balance sheet breaks down what the company owns (its assets) and what it owes (its liabilities). On the flip side, the income statement explains the sources of net profit or loss and covers a specific time, and cash flow is prepared for a specific time frame and details the sources of cash in and outflows.
A financial statement that has been independently audited and certified must provide a clear, unbiased, and transparent picture of your company. It can also uncover fraud and provide oversight for the finance departments of the firm. If possible, you should always try to certify financial statements from an independent auditor. That doesn't mean you can't get an occasional second opinion on your financial statements and health. It might be worth considering a change in accounting personnel if you see any errors in the statement. An accountant can interview your staff to ensure they follow the guidelines on billing and educate them where necessary.