Understanding the Basics of financial statements is essential for tax consultants to effectively
analyze a company's financial health. These statements, including the Balance Sheet, Income
Statement, and Cash Flow Statement, provide a snapshot of a business's financial position, performance, and cash flows. The Balance Sheet shows assets, liabilities, and equity; the
Income Statement details revenues and expenses, while the Cash Flow Statement tracks cash
inflows and outflows. Mastery of these fundamentals empowers tax consultants to offer
informed advice on tax planning, compliance, and strategic financial decisions for their clients.