The Importance of having a Personal Balance Sheet
At Zelin & Associates, we are largely known for our tax preparation services. However, we also focus on helping our clients achieve true financial wealth. Our financial advisory division can help guide you with making investments into assets that preserve your money and create financial freedom. One of the tools that can help guide you into a better financial future is a personal balance sheet.
While balance sheets are typically associated with publicly traded corporations. They can also be applied to your personal household and business. Balance sheets, which lists out all your personal or company assets and liabilities will help create a clear picture of your ability to make investments and take on debt.
Your balance sheet will show your ability to get out of debt, how much you own, and your total net worth. It will help you track your spending and asset appreciation. And ultimately, it will provide you with a financial “scorecard.”
Benefits of having a balance sheet:
- Have a real-time status of your financial situation
- Be able to provide lenders with a detailed financial summary of your net worth
- Be able to have focused discussion with your CPA and financial advisors.
- Track your asset growth from year to year
- Manage debt better by tracking your long term and short-term liabilities
There are various ratios that can be computed from your balance sheet can have profound implications on your ability to make financial moves. After you complete your balance sheet, feel free to schedule a consultation with us to discuss how we could help improve your financial standing and increase your net worth.