4 financial statement templates: Free downloadable examples & how to use them

What is a financial statement?

A financial statement is a structured summary of a business's financial performance and position over a specific period. These documents provide essential information about how much money a company is making, spending, and retaining.

The three most common types of financial statements are:

• Balance sheets: Outline a company’s assets, liabilities, and equity at a given point in time

• Income statements: Summarize revenues, expenses, and net profit or loss over a period

• Cash flow statements: Track the movement of money in and out of the business

Together, these reports offer a detailed view of a company’s financial health, helping stakeholders assess profitability, operational efficiency, and future growth potential.

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Why are financial statements important?

Financial statements play a crucial role in helping businesses and individuals understand and manage their financial health. Here are some of the key reasons they matter:

Understanding your current financial position

Financial statements give you a clear snapshot of your financial situation. Whether you're tracking a company or managing your personal finances, these documents help you see what you own, what you owe, and your net worth.

Supporting accurate budgeting and forecasting

With a structured view of your income and expenses, financial statements allow you to build realistic budgets and forecasts based on actual performance, not guesswork.

Demonstrating creditworthiness to lenders

When applying for loans, financial statements are often required to show you have the means and stability to repay. Lenders use this data to evaluate risk.

Meeting legal and tax obligations

Accurate statements ensure your business remains compliant with financial regulations and help simplify tax filings with reliable figures.

Enabling better financial planning

Whether you're expanding a business or saving for a future goal, these documents help you make smarter decisions by showing you where you stand financially.

Highlighting opportunities for improvement

By comparing past and current performance, you can identify areas for cost savings, increased efficiency, or strategic investments.

Tracking progress over time

Regularly updated financial statements act like a financial report card, helping you monitor growth, set goals, and measure success.

4 key financial statement templates by type

Financial statements come in a variety of forms, each with a specific purpose. Below are some of the most essential financial statement example templates, which you can download and customize for your business or personal use.

Balance sheet template

The balance sheet offers a snapshot of your business's financial standing at a specific point in time. It outlines:

• Assets: What the business owns (cash, inventory, equipment)

• Liabilities: What the business owes (loans, accounts payable)

• Equity: The owner's interest after liabilities are deducted from assets

This template is useful for understanding your company’s net worth and financial stability.

Income statement template

Also known as a profit and loss (P&L) statement, the income statement tracks your revenue and expenses over a given period. It includes:

• Revenue and sales

• Cost of goods sold (COGS)

• Operating expenses

• Net income or loss

Use this template to assess profitability and make informed budgeting decisions.

Cash flow statement template

The cash flow statement shows how money moves in and out of your business. It helps you track:

• Cash received (from sales, investments, loans)

• Cash spent (on rent, payroll, supplies)

• Net cash flow

This is essential for evaluating your company’s liquidity and ability to cover short-term obligations.

Personal financial statement template

This template is ideal for individuals or small business owners applying for credit. It summarizes:

• Personal assets: Real estate, investments, savings

• Personal liabilities: Loans, credit card balances, other debts

• Net worth: Assets minus liabilities

Lenders often require this document when assessing credit risk or personal guarantees.

How to create a financial statement in 6 steps

Creating accurate and professional financial statements is essential for monitoring performance, making informed decisions, and meeting compliance requirements. Whether you’re preparing statements for internal use or external stakeholders, follow these steps to ensure accuracy and consistency.

Step 1. Gather financial data

Start by collecting all relevant financial information from your accounting software, spreadsheets, bank statements, invoices, receipts, and payroll records. Ensure you have up-to-date data for the reporting period you want to cover.

Step 2. Choose the right financial statement format

Decide which financial statement you need—a balance sheet, income statement, cash flow statement, or personal financial statement. Each serves a different purpose, so align your choice with your reporting goals. Use pre-built templates or select a financial report format compatible with your accounting software.

Step 3. Input data into a template or accounting system

Enter your financial data into the corresponding sections of your chosen template or platform. This includes line items such as revenue, expenses, assets, and liabilities. Make sure to categorize everything according to standard accounting principles to maintain consistency.

Step 4. Review and ensure accuracy

Audit your entries for typos, missing data, or misclassifications. Check that totals match across your accounting financial statements and verify that your balance sheet balances (i.e., Assets = Liabilities + Equity). Accurate statements reduce the risk of costly mistakes during audits or tax season.

Step 5. Share with stakeholders

Once finalized, distribute your financial reports to key stakeholders, including executives, investors, and lenders. Use clear formatting and concise labels to make the statements easy to interpret. Include comparisons to previous periods or budgets if helpful.

Step 6. Use financial software for automation

Consider using spend and financial management software to streamline the process. Tools like Rippling can automatically track transactions, generate reports in real time, and reduce manual data entry, saving time and improving accuracy.

Automate financial statements and management with Rippling

Rippling’s spend management software makes it easy to automate financial statements and expense management on a single, unified platform. Instead of juggling spreadsheets or disconnected tools, Rippling consolidates your finances, expenses, payroll, corporate cards, and more into a single system.

With Rippling, you can:

• Route expense reports to the right approver with custom approval workflows

• Flag out-of-policy spend using advanced policy rules

• Automatically categorize expenses and sync them with your accounting system

• Monitor real-time spend and trigger alerts for unusual activity

You can also reimburse employees globally in their local currency while keeping your financial reports aligned in a single dashboard. It’s automation with complete control, designed to help finance teams close the books faster and plan smarter.

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Financial statement template FAQs

How do I make my own financial statements?

To create your own financial statements, start by collecting accurate data from your accounting system, bank records, and receipts. Then choose the appropriate financial statement template (balance sheet, income statement, or cash flow statement) and input your data in a clear and organized manner. Be sure to follow accounting best practices and double-check your numbers for accuracy before sharing the report with stakeholders.

What are the 5 components of a financial statement?

A complete set of accounting financial statements typically includes:

1. Income statement: Measures profitability by showing revenues, expenses, and net income over a specific period.

2. Balance sheet: Lists assets, liabilities, and equity at a point in time to provide a snapshot of financial position.

3. Cash flow statement: Tracks cash inflows and outflows to assess liquidity and operating health.

4. Statement of changes in equity: Shows how equity changes over time due to profits, losses, dividends, or investments.

5. Notes to financial statements: Provides context, assumptions, and additional details to support the numbers.

How do you write a simple financial statement?

To write a simple financial statement, choose a financial report example template that fits your needs and fill in the essential fields. For example, a basic income statement includes line items for total revenue, cost of goods sold, expenses, and net profit. A personal financial statement form includes personal assets, liabilities, and a net worth calculation. Be clear and consistent in formatting, and make sure totals are accurate.

What is the right format of a financial statement?

The format depends on the type of financial statement and its intended use. Business financial statement templates generally align with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Use structured templates to maintain consistency and ensure compliance, whether you're preparing financial reports for internal review, tax filings, or investment opportunities.