On the contrary to what people believe, personal financial statement template can be beneficial for everyone. Most people may think that the template is only beneficial for the business, but it turns out that the template is quite handy for personal use and household management. Yes, you can also use the template for business if it is quite small and simple.
Personal Financial Statement
This is a written document that provides one’s financial outline within a certain point of time. In a simple personal statement, the document usually consists of two sections: the income flow and the balance sheet. The document is quite good to record and manage your personal finance – no matter what kind of format you are using. Whether you are using a simple format or a rather complicated one, such a documentation can be handy.
About Personal Balance Sheet
So, what do you know about the balance sheet? In this section, you include the liabilities and also assets. How do you manage the personal financial statement template?
- You will have to group your total assets in one section. Don’t forget to write everything in a detailed manner. Let’s say that you divide your asses in properties, vehicles, ad also investments.
- After the total assets, write down the details of your total liabilities.
- If you want to know your net worth, you will have to take the total assets and then reduce it with the total liabilities. The result is the net worth. Let’s say that your total assets are $370,000 while your total liabilities are around $250,000. It means that your net worth is $120,000 (370-250).
About the Income Flow Statement
Whereas the balance sheet listing out all of your assets (which may affect your financial position), the Income flow statement listing out the flow variable that may affect your financial standing.
- In income section, you should list the details of your income – the sources for your earning.
- In expenses section, you should do the same thing: providing the details of your spending.
Once you do it right, you should be able to see the total of your income as well as your spending in a detailed manner. And when the income flow and balance sheet is combined, it gives you a general idea of how your finance is doing and its condition – whether it is doing well or badly.
The Functional Use
So, why would you need the personal financial statement template?
- It gives you clear look of how your finance is running and doing
- It is an effective (and even valuable) tool when you want to plan out your finance
- It is generally goal oriented, so every user can make use of it to generate their own financial planning
- The tool is flexible and versatile. You can tweak it and adjust it the way you want it
- Such a tool can be perfect for those planning their finance the first time.
With the already provided template, no need to create everything from a start. You simply make use the available personal financial statement template and choose the one fitting your requirements and needs.