Step 1: Think of them as the end-product of the accounting cycle:
Every transaction recorded in the journal and ledger throughout the year is ultimately summarised into just a couple of structured statements for outsiders to read.
Step 2: State their two-fold purpose:
One statement (the Balance Sheet) freezes the position on a specific date, while the other (Profit and Loss Account) explains how that position changed over the period through income and expenses.
Final Answer:
Financial statements are the year-end summary of accounts — essentially the Balance Sheet and Profit & Loss Account — communicating a business's position and performance to its users.