Items you will need
- Bank balances
- Investment balances
- Loan balances
- Real estate value
- Expense totals
- Income totals
Financial statements are used to provide an overview of what a person owes, and what she owns. Financial statements are made up of two sets of numbers: the balance sheet which shows what you owe and how much you own; and the income statement which shows your weekly income and expenses for your lifestyle. Combining these two statements gives an overall picture of your financial health. This overall picture is often used for loans, credit and to see the overall debt-to-income ratio.
The Balance Sheet
Using Excel or similar software, open a balance sheet template. Log onto your bank website and find your account summaries.
Find the current totals for each account. Transfer these numbers from the bank page into the balance sheet in the appropriate space. The template will show you where to place these numbers.
Find your mortgage accounts next. These can also be found at the website of your mortgage lender. Often, if you have this account with the same financial institution which holds your checking and other accounts, you can access this information using the step above. Transfer the current principal to the balance sheet in the appropriate space.
Contact a real estate appraiser and get the current market value of your real estate holdings. This step does not need to be done each month, only every four months. This number goes into the asset column of your balance sheet.
Check the current value of your stocks and investments. This also can be found at the website of your brokerage agent or one of the many self-service investment sites. You need the current value of your investments for this month. Transfer those numbers to the appropriate space in your balance sheet.
Find all of your loan balances. This includes cars, credit cards, student loans and any installment payments. Again, this can be done online by visiting your account holder and logging into your account. Transfer the current outstanding balance to the liability column of your balance sheet.
The Income Statement
Find the income sheet template of your spreadsheet software. Open this template and go back to your bank website. Log into your bank account again.
Download all of your transactions for the past 30 days for each account. Save this file as a CSV or Comma Separated Value file. This makes the information easier to work with in Excel and other spreadsheet programs.
Categorize each of the items on your bank statements. Usually you will use categories such as Food, Clothing and Medical. The template will have a list of choices to help you with this. When you are ready to find the totals of each category, use "Data>Filter>Autofilter>AutoSum" by filling in the requested cells to find the totals.
Put total into the appropriate space on the spreadsheet. This will give you your expenses and income. Your income should be the greater of the two numbers.