How to Prepare a Personal Financial Statement

by Carl Wolf ; Updated July 27, 2017
Personal Financial Statements

Items you will need

  • Calculator
  • Check book
  • Bank statements
  • Statement of investments
  • Listing of furniture
  • List of automobiles
  • Listing of loans and notes receivable
  • Statements of current debt (charge cards), notes payable and mortgages
  • W-2 statement of earnings or most recent pay stub
  • 1099 forms for contractor fees, interest, dividends and capital gains
  • Listing of rents and royalties received
  • Listing of income from retirement plans, pensions and social security
  • List of household expenses and bills
  • Estimated tax amounts if withholding for self
  • Latest tax return, if available

Whenever you prepare personal financial statements, you are presenting your current financial status and health. There are two types of statements that must be prepared known as the "Balance Sheet" and "Statement of Income." The Balance Sheet is a momentary picture of what you own (assets) and what you owe (liabilities), the difference being your net worth. The income and expense statement or cash flow report shows for a stated period of time, the income that is coming to you and the expenses that are being sent out, the difference being your net income or expense.

Prepare Personal Financial Statements

Step 1

Place balance of check book register on the first line of assets schedule. List any money market balances and time deposit accounts furnished by bank statements. List value of any bonds held according to statements provided. List value of any notes receivable from all sources per records maintained. List value of any stocks owned according to statements received. List value of any retirement accounts owned from statements provided. List value of automobiles owned per blue book on separate lines. List value of all real estate owned from reputable sources such as real estate agents. List value of any businesses owned per separate schedules or through tax return. List value of any jewelry, collectibles, precious metals, furniture, art and any other valuables owned. Add all of the above lines in order to arrive at the figure for total assets.

Step 2

Enter balance of current debt from charge cards on first line of liabilities schedule. List balance of any notes payable owned to individuals or entities. List any taxes payable to the IRS or other tax authorities. List balances of any real estate mortgages owed. List any other liabilities that must be accounted for such as accounts payable. Add all of the above lines in order to arrive at the figure for total liabilities. Subtract total liabilities from total assets shown under step 1 to arrive at net worth.

Step 3

Put total wages or business earnings on first line of profit-and-loss schedule for the period covered. List interest received from assets owned. List dividends received from assets owned. List rents and royalties received from properties owned. List income received from pensions, retirement plans and social security, if any. List capital gains received, if any. List any other income not reported elsewhere. Total the above income lines in order to arrive at total income. List total of all expenses incurred that were not previously included in business earnings. List income taxes paid or owed but not withheld for the period under review. List any other expenses not previously accounted for. Total the above expense lines in order to arrive at total expenses. Subtract total expenses from total income in order to arrive at net profit or loss.

About the Author

Currently residing in Coral Gables, Florida, Carl Wolf has been a banker and financial services professional for the past 41 years. He began to publish online articles about his profession in 2009. Wolf holds an associate degree from Los Angeles City College and a certificate in international banking.

Photo Credits

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