Personal Financial Statements

At the end of the day, the most important set of financials an individual needs to concern themselves with is their personal financial statements. After all, if you don’t know where you are at, it is difficult to know where you are going.

Personal financial statements can be used to help potential lenders assess an individual’s credit worthiness. These statements are generally used to obtain loans or as an annual requirement for individuals carrying large loan balances. Many banks provide a format for the requested information and we may be able to help you complete these at relatively low cost.

As individuals begin to accumulate substantial assets, however, these forms may not fairly present the entire financial picture that a lender needs to consider when making a lending decision – what lenders often refer to as an individual’s global cash flow. When funds are being transferred between multiple controlled entities and individuals hold real estate, portfolio accounts and alternative investments, it can be difficult for potential lenders to fairly assess the individual’s borrowing capacity.

In these situations individuals may benefit by having formal statements prepared in accordance with standards set by the American Institute of Certified Public Accountants. These financial statements may include a statement of financial condition, a statement of changes in net worth, as well as, disclosures indicating the methods used to account for the various elements included in the financial statements. This presentation is sure to leave a lasting impression on potential lenders and business partners.

For clients working with our sister company, Podraza Financial Advisors, to develop and implement a financial plan, personal financial statements become integral to monitoring the overall progress being made on the plan. One of the first steps in developing a personal financial plan is putting together a set of personal financial statements and we can continue to update your personal financial plan at regular intervals to help monitor the progress you are making towards achieving your personal financial goals.

Call today to find our more about how a compilation of personal financial statements can help you achieve your long-term financial objectives.

Personal financial statements can be used to assess an individual's credit worthiness or to assist in the monitoring the progress they are making on their personal financial goals.