Financial documents are official papers that provide information about an individual's or organization's financial status. Common examples include bank statements, tax returns, and balance sheets. These documents help track income, expenses, and overall financial health, making them essential for budgeting and financial planning. Businesses often use financial documents to communicate their performance to stakeholders. Investors, for instance, rely on income statements and cash flow statements to assess profitability and liquidity. Accurate financial documentation is crucial for compliance with regulations and for making informed decisions regarding investments and expenditures.