Switchboard Finance Logo – Financial Statements Glossary

Financial Statements

Financial Statements are formal reports showing a business’s income, expenses, assets, liabilities, and overall financial performance. They are commonly required for Business Loans, Equipment Finance, Vehicle Loans, and full-document loan assessments. Related terms: Balance Sheet, Profit & Loss, Cash Flow Statement. Relevant blogs: 9 Cashflow Mistakes SMEs Make, Business Cashflow System, 7 Business Costs You Can Finance.

Why Financial Statements Matter

Financial Statements allow lenders to assess a business’s financial strength, stability, and borrowing capacity. They help determine whether a business can comfortably service repayments across the Tradie Hub, Truckie Hub, Café Hub, and Whitecoat Hub, and are essential when applying for Business Lines of Credit, Working Capital Loans and Invoice Finance as part of a broader business cashflow strategy.

What Financial Statements Show

  • Total business income and expenses.
  • Profitability over time.
  • Assets and liabilities.
  • Cash flow and liquidity strength.
  • Financial risk level and long-term viability.

Official info: asic.gov.au

What documents are included in Financial Statements?
They usually include a Profit & Loss, Balance Sheet, and Cash Flow Statement.
Do lenders always require Financial Statements?
No — Low Doc loans may only need bank statements, but full-doc loans require full Financial Statements.
How old can Financial Statements be?
Most lenders prefer Financial Statements from the last 12–24 months.
Do Financial Statements affect borrowing capacity?
Yes — lenders use them to calculate serviceability and determine loan limits.
Can accountants adjust Financial Statements?
Yes — accountants can prepare or update statements to reflect accurate financial performance.