accounting and finance personal statement examples

Sample Personal Statement Accounting and Finance

by Talha Omer, MBA, M.Eng., Harvard & Cornell Grad

In personal statement samples by field.

The following personal statement is written by an applicant who got accepted to several top accounting and finance programs. Variations of this PS got accepted at the University of Michigan, Vanderbilt, and Indiana University. Read this personal statement to understand what a top essay in Accounting and Finance should look like.

Example Personal Statement Accounting and Finance

I have never made popular choices, whether academic or professional. Where high academic achievement irrefutably means pursuing a career in Medicine or STEM, I opted for a career in management. I was free to choose a path for myself, owing to my performance during an extensive pre-induction professional training program. Fortunately, I picked a path that everyone believed was insignificant.

My decision to move to a new city to pursue my path did not receive encouragement. Making my own decisions has given me the freedom to dream and make it a reality. It has strengthened my belief that I am the only one who can bring a difference for myself and those around me. Brazil’s institutions may seem frozen, yet, at the grassroots, Brazil is in perpetual motion with ceaseless creativity. To accelerate this motion, we need to bring better and more affordable solutions; I plan to do that.

Growing up in Brazil, I have constantly questioned why we are still not growing economically despite having abundant resources. I frequently discussed the economic factors affecting us with my father, leading me to work at local NGOs and attend voluntary programs. My interest intensified when I discovered during these experiences that the unequal distribution of resources was a major cause of our economic constriction.

Moreover, our medical, engineering and academic professionals would not work in rural areas due to a lack of facilities, further debilitating the imbalance. It made me realize that we could only reap the benefits of our efforts if there were a proportionate distribution of resources. Realizing how effective mobilization of resources can aid in eradicating social ills, I developed an interest in management. This equipped me with technical knowledge and provided room for opinion building.

Pursuing this path, I joined the leading undergraduate institution in the country. The zeal with which I made this decision led me to graduate summa cum laude. While studying, I taught communication skills to undergraduate business students from rural areas. Meeting these students compelled me to get involved even though I lacked formal teaching training. Through empathy and friendly get-togethers, I was able to help these students conveniently traverse in English. With this experience, I understood that my time and energy had been well spent and that as an agent of change, one does not necessarily need to be exceptional; instead, one requires creativity, patience, and emotional intelligence.

After graduation, I followed through with my goal of facilitating change by joining the banking sector as an accounting and finance trainee. By working in Brazil’s most vital financial sector, I was exposed to diversified experiences, from being as simple as issuing customer chequebooks to designing accounting and credit proposals to the tune of USD 1.2 billion. Furthermore, while working on individual projects, I developed an in-depth understanding of international accounting rules that regulated trade transactions; the learning opportunities were immense.

Two and a half years of experience in the finance sector brought me to work for the country’s central bank. The anxiety that accompanied moving away from home for the first time was overwhelmed by my professional and personal growth. Nine months of extensive training and on-the-job assignments exposed me to interminable learning opportunities. However, my real gain has been in the form of self-improvement and growth that accompanied my first experience living independently. Leaving the protective living that I enjoyed with my family is challenging, but it has developed and strengthened my capabilities of taking and owning my decisions. Above all, knowing that my family is not always around to guide me has instilled in me a greater sense of responsibility.

During the two a half years of experience in accounting and finance, I observed the financial exclusion experienced by some important yet financially constrained sectors of the economy. This exposure motivated me to join the Development Finance Department upon my appointment to the country’s central bank. Moreover, most of the firms operating in any country of the world are either small or medium enterprises. Thus, providing an enabling environment to such enterprises is significant for economic growth and employment generation.

In Brazil also, 90 percent of the enterprises are small and medium-sized, and lack of access to formal sources of finance is a significant impediment to these enterprises’ growth. Therefore, a huge room for improvement is available concerning the development of policy framework and market infrastructure for the financial inclusion of this sector. As a part of the central bank, I have been allowed to intervene in a system that is not effectively performing its role of financial intermediation. Innovation in financial products, development of accounting and risk mitigation strategies are requirements to alleviate this segment’s financial exclusion.

By broadening my exposure and enhancing my knowledge, I aim to equip myself better to address the shortcomings of one of the critical segments of the economy.

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• Accounting and Finance Personal Statement

Accounting and Finance Personal Statement Example

Sample statement.

No one who has watched the news or read the newspapers over the last few years can doubt the importance of finance in the modern world. Since the economic crash of 2008, the economies of Britain, Europe and the wider world have been headline news, and the affects have been keenly felt by each and every one of us. I want to study finance at university not only to allow me to understand what is happening, but also to influence these events for the better.

With my parents running a long-standing family business, accounts and finance have been a large part of my life for as long as I can remember. My father has always involved us in the running of the business, explaining his decisions so that we could support him and know what was going on. However, it has been really difficult to watch as events way beyond his area of business, have caused his company to struggle, despite the hard work and dedication of him and his staff.

I have steered my studies towards the ecomomic subjects so that I can gain a better understanding of the wider picture and how this has affected my family business. I have studied maths and business studies, along with geography to give me a worldwide context for these events. As I have got older, I have also become more involved in the details of the company’s finances, gaining an in depth understanding of the mechanics of running a small business.

While I will ultimately inherit the family business from my father, I aim to spend the intervening time gaining as much experience in the wider world of finance and accounting as I can, in order to bring fresh perspectives to the way things are done. I believe the best first step on this road is to study finance and accounting at university, so that I can apply the very best practice to the business.

I am a subscriber to The Economist and regular reader of the Financial Times, which help by giving me different views and opinions on the key issues of the day. I am also a keen member of the school debating society, and enjoy being given a point of view to defend, especially if it is one that I do not personally agree with. I have even considered a career in law as a result of this, but I feel that finance and the economy are in my blood as part of my upbringing.

Of course, life is not all work, and I enjoy hill walking with my friends as well as playing for the school rugby and cricket teams. I was also part of a school project to build and race a go-cart, and was one of just a handful of people who stuck with the project to the end. This experience of working in a close-knit team was a valuable time for me and one that I will treasure, along with the second place trophy that we worked so hard for.

I believe that university life will be an education for me, not only academically, but also in a social and interpersonal way. The experience will prepare me for the working world and ultimately make me a worthy successor to my father as head of the family business. 

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Personal Financial Statement: Definition, Uses, and Example

What Is a Personal Financial Statement?

The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general information about the individual, such as name and address, along with a breakdown of total assets and liabilities . The statement can help individuals track their financial goals and wealth, and can be used when they apply for credit .

Key Takeaways

• A personal financial statement lists all assets and liabilities of an individual or couple.
• An individual's net worth is determined by subtracting their liabilities from their assets—a positive net worth shows more assets than liabilities.
• Net worth can fluctuate over time as the values of assets and liabilities change.
• Personal financial statements are helpful for tracking wealth and goals, as well as applying for credit.
• Although they may be included in a personal financial statement, income and expenses are generally placed on a separate sheet called the income statement.

Understanding the Personal Financial Statement

Financial statements can be prepared for either companies or individuals. An individual’s financial statement is referred to as a personal financial statement and is a simpler version of corporate statements . Both are tools that can show the financial health of the subject.

A personal financial statement shows the individual's net worth —their assets minus their liabilities—which reflects what that person has in cash if they sell all their assets and pay off all their debts. If their liabilities are greater than their assets, the financial statement indicates a negative net worth. If the individual has more assets than liabilities, they end up with a positive net worth.

Keeping an updated personal financial statement allows an individual to track how their financial health improves or deteriorates over time. These can be invaluable tools when consumers want to change their financial situation or apply for credit such as a loan or a mortgage . Knowing where they stand financially allows consumers to avoid unnecessary inquiries on their credit reports and the hassles of declined credit applications.

The statement allows also credit officers to easily gain perspective into the applicant's financial situation in order to make an informed credit decision. In many cases, the individual or couple may be asked to provide a personal guarantee for part of the loan or they may be required to put up collateral to secure the loan.

Special Considerations

A personal financial statement is broken down into assets and liabilities. Assets include the value of securities and funds held in checking or savings accounts , retirement account balances, trading accounts , and real estate. Liabilities include any debts the individual may have including personal loans, credit cards, student loans, unpaid taxes , and mortgages. Debts that are jointly owned are also included. Married couples may create joint personal financial statements by combining their assets and liabilities.

Income and expenses are also included if the statement is used to attain credit or to show someone's overall financial position. This can be tracked on a separate sheet or an addendum, called the income statement . This includes all forms of income and expenses—typically expressed in the form of monthly or yearly amounts.

The following items are not included in a personal financial statement:

• Business-related assets and liabilities: These are excluded unless the individual is directly and personally responsible. So if someone personally guarantees a loan for their business—similar to cosigning —the loan is included in their personal financial statement.
• Rented items: Anything rented is not included in personal financial statements because the assets aren't owned. This changes if you own the property and rent it out to someone else. In this case, the value of the property is included in your asset list.
• Personal property: Items such as furniture and household goods are typically not included as assets on a personal balance sheet because these items can’t easily be sold to pay off a loan. Personal property with significant value, such as jewelry and antiques, may be included if their value can be verified with an appraisal .

Business liabilities are only included in a personal financial statement if an individual provides the creditor with a personal guarantee.

Keep in mind. Your credit report and credit history are big considerations when it comes to getting new credit and every lender has different requirements for issuing credit. So, even if you have a positive net worth—more assets than liabilities—you may still be refused a loan or credit card if you haven't paid your previous debts on time or have too many inquiries on file.

Example of a Personal Financial Statement

Let's assume that River wants to track their net worth as they move toward retirement . They have been paying off debts, saving money, investing , and are getting closer to owning their home. Each year, they update the statement to see the progress they have made.

Here's how they would break it down. They would list all their assets—$20,000 for a car, $200,000 for their house, $300,000 in investments, and $50,000 in cash and equivalents . They also own some highly collectible stamps and art valued at $20,000 that they can list. Their total assets are, therefore, $590,000. As for liabilities, River owes $5,000 on the car and $50,000 for their house. Although River makes all of their purchases with a credit card, they pay the balance off each month and never carry a balance. River cosigned a loan for their daughter and $10,000 remains on that. Even though it is not River's loan, they are still responsible, so it is included in the statement. River's liabilities are $65,000.

When we subtract their liabilities from their assets, River's net worth is $525,000. Although they use it mainly to track their financial health, River can use this information—and the statement as a whole—if they want to apply for any other credit.

Small Business Administration. “ Personal Financial Statement .” Pages 2-3.

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Accounting Personal Statement sample

Accounting Personal Statement sample Accounting Personal Statement: I have a consuming interest in the world of business and finance, and I am eager to forge a career in accounting.  My particular interest at the moment is in audit and taxation questions, but all aspects of finance and financial handling appeal to me as challenging, substantial and satisfying areas of professional life.  To be an accountant in the modern world is to enter a realm of opportunity.  The accountant’s role in modern business grows steadily in importance, and often leads to management decisions and very significant involvement in the running of an enterprise.  Furthermore the profession is highly respected, and increasingly versatile.  The accountant can provide services for individuals, companies or governments.  He or she can act as a consultant offering advice on areas such as the design of accounting, the data processing system within an organization, or the choice of controls to safeguard assets.  Forensic accountants oversee bankruptcies and asset liquidation, and management accountants analyze a firm’s financial information and the management of its assets.  The diversity of opportunities in the career presents a very attractive prospect, and I believe that my choice of degree course and career is based on true and careful consideration, and that I have the academic ability and determination to succeed.

I look forward to studying the complex and highly regulated field of accounting systems in a degree course, and developing the sort of expert judgement which is essential in the profession.  I need to learn about accounting and auditing standards, about such things as UITF abstracts and exposure drafts.  I hope to explore questions of company legislation, and the impact of changes in accounting regulations, and I am already fully aware of the weight of responsibility on the accountant’s shoulders, and how absolutely essential it is for him to have accurate and up to date knowledge.  Ethical standards and the regulatory system will also be central.  On taxation I am interested in revenue systems and interpretations, recent tax cases, changes in tax law, and developments in specific taxes such as VAT. The possibility of working abroad will of course mean mastering the tax regime of the country I am working in.  There are also the intriguing issues of the taxation of e-commerce, and the coordination of taxes in an increasingly international trading market. I know that I have much to learn, and I am eager and deeply committed.

I have some work experience that has given me a taste of the commercial world and allowed me to work with money and elementary accounting procedures.  I have worked in retail sales and in catering, as well as in an optician’s.  In all these posts I handled cash, prepared daily account figures and reports, took stock and carried out basic audits.  I also worked with others, sometimes training them and organising their work rotas. I believe that these jobs have given me a mature sense of responsibility and a realistic awareness of the way that money functions in the economy.

Outside my work and my financial interests I have a number of enjoyable pastimes.  I play the piano to grade 4, and enjoy dance and photography.  Travel is one of my great pleasures.

I am the first member of my family to apply to university. I am a hard working and level-headed individual, with a mature outlook on life and a realistic sense of the scale of the challenges I face in my choice of degree subject, and of the demands as well as the rewards of my planned career. My employment record has shown me to be reliable and diligent, a good team worker but also someone who can work on his own initiative.  I am highly motivated, and set myself high standards.  To work as an accountant in a major corporation, or in public service, seems to me to be a very fulfilling and humanly rewarding role to play in the modern world, and I hope you will consider my application.

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Personal Statement of Purpose Finance and Accounting MSc

• Sample personal statement

28 July, 2022

Personal statement of purpose finance and accounting msc share.

• 12 May, 2013

With my deep interest, I want to pursue the course Finance and Accounting MSc at the University of Brighton because this course has access to modern computing facilities and specialist computing packages. And this course will provide me with the skills to make these investment decisions across various business areas. This degree will give me develop an in-depth knowledge of financial theory and practice, research methods, financial markets, financial accounting and management accounting. Moreover, I found this Finance and Accounting MSc will help me to specialise and meet the growing demand for finance professionals with strong research skills. I can also progress with or continue by studying for a Ph.D. I want to develop my career in this sector and the accounting and financial services sectors require a high level of understanding of theory and practice. And this MSc course can make me professional. I believe that this course will help me become professional and proficient in my future career.

Following my Intermediate and Secondary education from the Business Studies group, I completed my Bachelor’s degree major in Accounting in February 2022 from National University, Gazipur, Bangladesh. In my home country, there are many open places to develop a career in accountancy but they require a professional applicant. From this MSc course, I can meet the growing demand for finance professionals with strong research skills. So, I decided to complete my further higher studies by choosing this Finance and Accounting MSc at the University of Brighton. While studying, I was involved in various co- curricular activities to enrich my knowledge and skills. Attended and organized different types of seminars and workshops, participated in different voluntary services and activities, and actively participated. From my last education qualification, I have realized that I need to gain knowledge about business accounting and finance part as well as I want to grow my career in this area. I also have my English language concern and I attend a UKVI IELTS test where my overall band score is 6.0. I think I should gain more knowledge in the field so I decided to continue my further studies with this course. I am confident that my professional goal makes me a suitable candidate for the course.

By reviewing the university website, I have seen the course Finance and Accounting MSc at the University of Brighton is ideal preparation for continuing my studies at MPhil or Ph.D. level, also I will be able to work as a professional researcher in finance. The course will prepare me for a specific level of accounting and financial roles, accountancy firms, consultancies and finance departments in the private and public sectors. Studying in a simulated business environment will teach me to explore business practices from regulatory and risk management issues to how financial markets operate and what makes them crash. This course has been designed to help me develop the necessary skills to solve the financial accounting standards, complex business problems in recent facing situations. Modules on the course involve both taught sessions and guided independent study. The core module units include Economics of Financial Markets, Financial Theory and Practice, Research Methods for Finance and Economics, Dissertation or Work Placement Project. Mandatory specialism modules are- Contemporary Issues in Accounting, International Investment and Trading, Economics of Money, Interest Rates, Banking and Financial Institutions. Completion of my dissertation will teach me the undertake research leading to practicable recommendations based on sound analysis and judgment. All of these modules will help me to broaden my knowledge of accountancy understanding in an international context which will prepare me for my employment in an increasingly internationalized business world. Hopefully, I have been able to clear the purpose of my admission to the university. Moreover, during times of crisis, accountancy is seen as a stable profession. By completing this course, I will be able to work with reputed organisations in my home country ranging from accountancy, banking, financial management, and management consultancy. So, I believe this course will be the right choice for my career plans and objectives.

UK’s academic reputation is globally renowned and it is known that having a graduate degree from a UK university will definitely propel one’s career to a significant level. However, the study environment in my country follows the theoretical system of education which is quite different and no soft skills are acquired. The UK maintains a quality management system with high standards in all fields. In recent years, all companies in Bangladesh are emphasizing hiring of Bangladeshi graduates with degrees from abroad, as they see the transferrable skills carried forward from the international education will play a key role in transforming their approach to the business and believe these graduates are capable of doing so. The transferable skills from the UK are key to advancing graduates through organizational growth and gaining a competitive advantage. This reason attracted me to pursue a degree in the UK. A recent survey of International Graduation Results in 2019 produced by iGraduate by Universities UK International shows that 82% of international graduates say their UK degree is valuable for financial investment and a similar number of graduates say they are satisfied or very satisfied with their careers. About 83% think a UK degree has helped them get a job. These aspects have driven my ambition to get a degree from a UK institution.

University of Brighton is one of the re-known top universities in the UK. As my study destination is the UK and I wish to study at the University of Brighton, because it offers an experience that goes way beyond the classroom. Their core values are part of a dynamic, diverse and creative community that embraces partnership working and that makes a positive difference to society. From there, I will be able to gain real-world knowledge and transferable skills that employers look for in graduate recruits. And by the time I graduate, I’ll feel confident and fully prepared to start my career anywhere in the world. The university won a Silver Award in Teaching Excellence Framework, which means that the learning environment and the teaching I will receive are consistently better than the national requirements for UK Higher Education. The university has around 18,000 students and 2,400 staff studying and working at four campuses in Brighton and Eastbourne. Also, according to Destination Leavers from Higher Education 2017-2018, 94% of University of Brighton graduates get engaged in work or further study within the first 6 months. I will also be able to make connections with local, national and international companies, as the university has links with over 1800 businesses, including Fujitsu, BT, Sky, Boots, IBM, and the NHS, while the university educates professionals from 90% of FTSE 100 companies. The university puts students on a fast track that is designed to get a postgraduate degree into faster employment with excellent career opportunities. Moreover, the University brings the workplace into classrooms so it will be beneficial for me to attain my personal career objectives by practicing in this type of learning environment. I am looking forward to studying and wish to experience all the opportunities the University of Brighton has to offer.

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What Is a Financial Statement: 4 Types With Examples

6 minute read

Key Takeaways

Financial statements summarise a company's financial activities, presenting comprehensive details about its financial position, performance, and cash flows at a specific time.

There are 4 primary types of financial statements, including the balance sheet, the income statement, the cash flow statement, and the statement of retained earnings.

Whether you're just starting a business or have been operating for a while, having transparent financial reports is crucial. Eventually, you will need to clarify your financial situation, whether for a loan application, investor pitches, or strategic decisions like pricing and revenue projections. In these situations, you will likely need "financial statements."

This article will cover the basics of financial statements, why they're necessary, the various types and examples, and the differences between audited and unaudited statements.

What Is a Financial Statement?

Financial statements are a compilation of written records that display a company's financial activities and performance at a specific time, usually annually, quarterly, or monthly. The purpose is to provide the company's financial position information to internal and external stakeholders.

Financial statements are typically prepared by bookkeepers and accountants who adhere to Generally Accepted Accounting Principles (GAAP) or industry-specific best practices.

Why You Need Financial Statements

Financial statements are crucial for monitoring a company's financial health, obtaining funding, and reducing tax complexities.

Companies often prepare these statements quarterly to assess business profitability, financial stability, and resource allocation. This aids in making informed key decisions, such as pricing strategies, cost reduction, and growth planning.  

When seeking outside investment or loans, these statements offer shareholders and creditors crucial details to assess the company's creditworthiness, risks, and potential returns on investment or loans. Properly prepared financial statements could make securing necessary funding more attainable.

Lastly, annual financial statements are crucial for tax reporting and tax return filing.  Documenting income, expenses, assets, and liabilities in the statements simplifies completing the paperwork required by tax authorities each year.

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4 Types of Financial Statements

The primary types of financial statements are the balance sheet, income statement, cash flow statement, and statement of retained earnings. 

Each offers a different perspective on a company's financial status. Combined, they provide a complete picture for owners, stakeholders, and investors. 

Let's look into each of these statements to understand their significance and components.

Balance Sheet

A balance sheet is a summary of a company's assets (what the company owns), liabilities (what the company owes), and shareholders' equity (the net worth of shareholders) at the end of a specific period in time, most commonly a year. 

This statement is alternatively known as a statement of financial position or a statement of financial condition.

Components of a Balance Sheet

The 3 main components of a balance sheet consist of assets, liabilities, and shareholders' equity. The table below breaks down the key details. 

This statement is called a balance sheet because the total assets must equal the total liabilities and shareholders' equity, ensuring the balance between what a company owns and what it owes. Therefore, the balance sheet follows the equation: 

Total Assets = Total Liabilities + Total Shareholders' Equity.

 Income Statement

An income statement is a financial record that presents a company's revenue and expenses over a specific period, most commonly a year, indicating whether the company is making a profit or loss. This statement helps business owners determine profit-generating strategies, such as increasing revenues or reducing costs.

An income statement is also referred to as a profit and loss (P&L) statement or an earnings statement.

Components of an Income Statement

The main components of the income statement include revenue, expenses, and net profit or loss. 

These may be broken down into

• Revenue: The total income earned by a business within a specific period.
• Costs of goods sold (COGS): The total expense of making the products, covering the cost of materials and labor.
• Gross profit: The total revenue deducts COGS.
• Total expenses: The total amount of money spent to make, sell, or promote the products.
• Operating income: The total profits minus operating expenses, such as equipment and labor costs.
• Depreciation: The reduction in value of a company's assets over time.
• Pretax income or income before taxes: Income minus costs but before taxes are subtracted.
• Net income: The total income after deducting all costs.

The income statement formula can be written as:

Net income = Revenues – Expenses

Cash Flow Statement

A cash flow statement, also known as a statement of cash flows, aggregates data regarding all cash and cash equivalents, inflows, and outflows that a company experiences in a given period. 

This statement shows where cash is being generated and used and whether the business has enough liquid cash to meet its obligations and invest in assets.

Tip: Explore our articles to find everything you need to know about cash flow management and cash flow analysis.

Components of a Cash Flow Statement

A cash flow statement includes operating activities, investing activities, and financing activities. 

• Operating activities: the cash flow generated or used in regular business operations, including revenue and expenses from goods and services provided.
• Investing activities: The cash flow from buying or selling assets, such as real estate and vehicles, or intangible assets like patents and licenses.
• Financing activities: The cash flow resulting from the acquisition of debt or equity.

Example of Cash Flow Statement

Statement of Retained Earnings 

The retained earnings statement is a financial report that shows the net income a company has retained after distributing dividends to shareholders. It also outlines the changes in this balance during a particular accounting period.

These earnings are usually used to pay off debts or reinvest. When retained earnings gather over time, they can be referred to as accumulated profits.

Some company's financial statements may not feature a separate statement of retained earnings. Instead, this information is included or provided as an addendum to either the income statement or balance sheet.

A statement of retained earnings is also called a statement of change in equity.

Components of a Statement of Retained Earnings 

The retained earnings consist of three main elements: the initial retained earnings at the beginning of the period, the net profit incurred during the accounting period, and the dividends distributed in both cash and stock during the accounting period.

• Beginning Retained Earnings: This is the equity balance from the end of the previous period, which carries forward to the start of the current period.
• Net Income: The profits generated from operations, automatically adding to the company's equity and transferring to retained earnings at the end of the year.
• Dividends: This represents the portion of profits distributed to shareholders rather than being retained by the company.

Retained earnings are calculated by combining the beginning retained earnings with the net income for the current period and then subtracting any dividends paid out to shareholders. 

In other words, the formula is:

Retained Earnings = Beginning Retained Earnings + Net Income − Dividends

Example of Statement of Retained Earnings

How Different Types of Financial Statements Interact

Essentially, a company’s operations, investments, and financing activities are interrelated, resulting in the connection between various types of financial statements.

For instance, the net income detailed in the company's income statement initiates the cash flow statement and contributes to retained earnings on the balance sheet, retained earnings on the statement of retained earnings will be stated on the balance sheet, and depreciation recorded in the income statement affects asset values on the balance sheet. 

Changes in working capital, asset purchases, borrowing, debt repayment, dividends, or stock repurchases affect both the cash and equity balances on the balance sheet and the cash flow statement.

Do Financial Statements Need to Be Audited?

Unaudited financial statements are reports prepared by accountants but have not undergone examination and verification by an external independent auditor. 

In contrast, audited financial statements are reviewed by a certified public accountant (CPA) to ensure compliance with standard accounting rules. Naturally, audited financial statements are more credible, but they require additional time and cost to prepare.

Whether financial statements require auditing depends on the entity and jurisdictions. For instance, in the US, publicly traded companies must file audited financial statements . Similarly, in New Zealand, financial statements submitted to the Companies Office must be audited . In Hong Kong, the Hong Kong Companies Registry mandates auditing for all companies. 

When securing a loan or funding, most potential funders and creditors prefer audited financial statements over unaudited ones.

Get a Good Business Account

Keeping good financial records is essential for a successful business. However, bookkeeping can easily get complicated if you combine personal and business finances in a single account. Hence, having a dedicated business account is the vital first step.

A business account that can be integrated with accounting software and allows you to connect and download transactions directly from your linked business bank account will be a significant plus. This will simplify not only your financial statement preparation but also your overall financial management.

If your business is registered in Hong Kong, Singapore, or the BVI, Statrys offers a multi-currency business account integrated with Xero accounting software and a comprehensive reporting dashboard. 

Here is a quick look at our key services:

What is a simple explanation for financial statements?

Financial statements are summaries that outline a company's financial activities, including its income, expenses, assets, liabilities, equity, and cash flow at a particular point in time.

What are the types of financial statements?

The four basic financial statements include: 1. Balance Sheet: Shows the company's assets, liabilities, and shareholders' equity at a specific period. 2. Income Statement: Outlines the company's revenues and expenses over a period, resulting in net profit or loss. 3. Cash Flow Statement: Details the inflows and outflows of cash and cash equivalents, indicating the company's liquidity. 4. Statement of Retained Earnings: Displays changes in retained earnings over a period, including profits retained in the business after dividends.

What is the objective of financial statements?

The objective of financial statements is to provide stakeholders with a clear and accurate overview of the company's financial status and performance. This information helps in making strategic decisions, securing funding, and complying with regulatory requirements.

When do you need financial statements?

You often need financial statements for annual tax reporting, quarterly company finance assessments, and when asking for loans.  In cases of significant corporate events like changes in ownership, sales, or mergers, up-to-date financial statements are also necessary. They provide a transparent financial snapshot of the company.

Can I prepare financial statements myself?

Depending on the size and needs of your business, you may be able to prepare the unaudited financial statements yourself. However, it's not generally recommended, as errors can lead to fines and more complications. It's often better to work with a professional who is familiar with accounting principles to ensure accuracy and compliance with relevant standards. Additionally, if an audited financial statement is required, it must be prepared by a Certified Public Accountant (CPA) or an equivalent professional.

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PERSONAL STATEMENT EXAMPLE Accounting and Finance Personal Statement

Submitted by Goutham

Become a tech specialist at Bangor University.

Become highly employable with a Computer Science degree that allows you to specialise in areas such as game design, data science & artificial intelligence.

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Pick Roehampton's Accounting degree for hands-on learning, networking opportunities, and paid placements setting your future up for success.

Accounting and Finance Personal Statement

New dynamic markets are offering boundless opportunities with firms gravitating towards these markets, where inflows of foreign direct investments result in large returns on investment. As the world increasingly moves towards a more globalised environment, there is a need to understand the interplay between different economies and markets. Having lived my formative years in an emerging economy, studying in a UK university will open up opportunities for me to interact with students from other backgrounds and learn how other economies affect global markets. Furthermore, it creates a suitable platform for me to gain insights into the recent financial turmoil.

It is fascinating how series of accounting management mistakes and compromises caused the fall of various consultancy firms one of which is Arthur Andersen. The failure of the firm maintaining faithful accounting standards especially in the Enron forgery case where huge debts off the balance sheets led to the downfall of a once “Big Five” accounting firm. Documentation of this incident sparked my interest in finance . This love for understanding how financial market operate was intensified by reading ‘Intelligent Investor’, which emphasized on maximization of probabilities through valuation analysis and margin of safety. It also focused on the importance of asset allocation, diversification and prevention of consequential errors in a portfolio. This urged me to complete an internship in Elixir Investment Bank. During my internship, I gained greater insight into the Nigerian financial markets, particularly the Nigerian Stock Exchange. I assisted in examining trends on the stock market , bond and commodity prices. I found the interrelationship between macro-economic data and investment decisions particularly interesting as how businesses used retrenchment approaches during a recession. Based on my research on dominant Nigerian e-commerce firms, I analysed balance sheet data and assisted in making recommendations to the clients on investment opportunities.

In the modern globalised world, the key in decision making for businesses is having sound geographical and economic background. This encouraged me to study Economics and Geography in A level and have enhanced by ability to critically analyse information as well as develop structured arguments with detail in current affairs. Studying mathematics has improved my numerical skills, especially statistics where I learned the use of regression line to make predictions and estimate error for model reliability.

In school, I led a team of young economic enthusiasts who were keen to study economics and accounting in senior school. Reading ‘the Economist’ provided me with material to organise weekly activities with the team, and helped me explain how key economic concepts apply to real-life scenarios. My experience with this team motivated me to compete in various Finance and Economics competitions hosted by my school.

I believe a key component in excelling at university is being able to contribute to discussions on topical issues. As captain of school debate team, I learnt that the key to being a great orator is learning how to connect to your audience. This experience assisted me in becoming highly competent in clearly expressing complex issues with clear enunciation. Debating on the topic “Is Deflation proving transitory?” permitted me exhibit quantitative analysis gained from studying Economics, on a macro scale.

Being prepared for the world ahead for me transcends having an impact in my community. As a young boys scout, I learnt that giving back to the society and helping others should be a part of life wherever you are. I volunteered at various orphanage homes,, assisting assisting with day-to-day challenges and sharing my personal life challenges.

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Accounting and finance personal statement example 18.

When thinking of how much power polymer notes hold, it was normal for a child like myself to ask, 'What is money?'. Looking back the answer was obvious. The literal meaning might be 'a medium of exchange' but I simply see it as 'to sustain'. I came to my interpretation of money through a trip to my motherland, Ghana.

For years, Ghana has experienced severe electricity supply challenges due to the economic crisis that led to the scarcity of consumers' payments. The frequent lack of electricity during my time there, impacted my daily activities. Although this was a short stay, having to come up with solutions everyday was frustrating, but it also made me think about the people who go through it every day.

This made me acknowledge the importance of business strategy and investment management. The ability of the Ghanaian government to come up with solutions for their monetary purposes is what inspired me to choose Accounting and Finance.

Studying A-Level Accounting has re-enforced the idea of wanting a to pursue a career in Accounting and Finance. I really enjoyed learning about suspense accounts due to their ability to give clarity to transaction errors along with doubtful entries. I believe that my further comprehension of basic accounting principles, shows transferable academic skills such as communication and debate. Heartland Payment Systems data breach in 2008 was the debate topic that questioned whether businesses should modernise their accounting records or not.

As a student of Business, A-level, I discovered how to form a profitable organisation through conducting internal and external analysis and judge financial performances. Learning about the techniques used in strategic analysis enabled me to assess the strategic position of a business, which is also one of the key components of a business' approach to become financially stable, and it’s something that’s vital to know for the work done in Accounting and Finance.

Studying Spanish and Italian, helped to improve my overall understanding and enhanced my knowledge on Spain's cultures and traditions along with both countries political and economic issues which were covered in the course. The courses brought various skills such as interpreting skills gained via translation and understating the link between ideas, acquired through linking topics of the course like financial impacts of tourism in Spain to employment.

The EPQ was an opportunity of fulfilling my curiosity gained from crime documentaries and series. Their cases are inhumane. This stimulated an interest to investigate an understanding of morality and the human brain distinctions. My independent study and time management skills have all come from the commitment and dedication I have put throughout the project, which shows traits that will support me in higher education.

When volunteering to the British Heart Foundation as a cashier, I realised the deeper sentiment of customer service. The existence of Gift Aid which I promoted when taking donations, is for charities to have extra money from HRMC but only if the donator pays tax. This gave me a broader understanding of the different types of businesses. To be more involved in the world of music, I learned guitar. I now play in my free time and I'm able to play complex pieces of music like 'Tears in Heaven' by Eric Clapton and thanks to joining a band, I played in a concert at the Staller Hall in Manchester in front of hundreds of spectators.

I’m eager to enhance my skills and I believe that my maturity, persistence, and curiosity are traits that will support me throughout the journey at university.

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