This paper point was to show the importance of analyzing financial statements for obtaining high quality and accurate information on business operations and the company's performance. and the role of accounting information for business operations. Through the theoretical view, it is an overview of the layout and the preparation of the financial statements themselves, the legal frameworks that should be observed when creating it and it's goals. Also, the paper shows that financial statements should not only be created for the purpose of satisfy the legal framework but can be also used to obtain a whole range of useful information for making business decisions. The financial statements are also of great benefit to external users as it can be analyzed to get a concrete picture of the company's business and the viability of potential investments. Public disclosure of financial statements makes information about companies easy to reach to all interested users, and their relevance and usefulness need to be pointed out. Also, the obligation of financial reporting and public disclosure makes the business of the company transparent for both internal and external users. The example of financial analysis were made on the company TSI d.o.o. Analyzes were performed using a series of indicators, BEX analysis, analysis using Kralicek's DF indicator and comparative analysis of balance sheet and profit and loss account. All the parts of the analysis were commented and pointed to the quantity and precision of the information that can be obtained by conducting the analysis of the financial statements. Also, the final conclusion of the business performance of the company TSI d.o.o. was based on obtained data that confirmed the working hypothesis of this paper- analysis of financial statements really are a prerequisite for assessing the company's business performance.