If you think creating your own personal financial statement is too tedious, you are wrong because there is one thing that can make this normally boring and tedious task a lot easier for you.
What you can do is use a personal financial statement template that you can easily make or you can download from the internet. This template makes the task of computing and analyzing your financial condition easier and faster because all you need to do is to fill out the necessary information and data specified in the template.
But before you get too excited and start filling out your personal financial statement template, you should first know your purpose for doing so. Some people just want to find out their current financial condition. Others need it for their business or when applying for a loan. Banks and lenders look at an individual’s financial statement to gauge the person’s capacity to pay. If they like what they see, then your application would most likely get approved.
Those are just some of the reasons why you need to prepare your financial statement. You should also know the things that you need to include such as your sources of income or assets like salary, business, real estate, interests and dividends, royalties, and so on. You should also include your liabilities. You should make your income statement, which includes your income and expenses. You should also create a balance sheet that states your assets and liabilities.
Creating these documents will let you know how you are doing financially as of the moment and how you did over a certain period of time.