Knowing about your current financial worth is primary step towards financial planning process. Net worth statement is considered crucial in process of financial planning. Net worth statement is an accounting of all assets minus all of company’s liabilities. Financial statement is very advantageous tool that helps you determine your current financial state. It also helps you tracking in which direction you are moving.
Net worth statement should be calculated once a year and compared it against previous years. For completion of your net worth statement, you are required to put down all in paper your current assets and liabilities. Current assets’ list will be including:
- Bank Accounts
- Saving Accounts
- Real Estate Investments
Similarly, liabilities will be included the mortgage on your home, real estate loans and any other debts if you have. Net worth business is generally based on the value of all assets and liabilities at the carrying value. Here is preview a comprehensive Personal Net Worthy Statement Template that can help you prepare it with perfection.
Net worth is a significant determinant of company’s value. According to expert advisors, net worth of your business should be calculated once a year and should be compared with previous year. Doing this will assist you to remember that it is suggesting you to do this at the same time when you file your annual tax return. Active investors and traders calculate their net worth every quarter or if possible every month. Doing this help them to do an additional calculation when deciding whether or not to make a major financial decision.
When you are going to total up your assets, you should confine yourself to items that have a value of $500 or more than that. This will help you to estimate items that are not likely to have an actual resale value and adding these items to your assets can lead to a serious over estimation of your net worth.
Use of net worth statement for personal finance has become very popular as it is a great tool through which one can easily estimate or see how he is going financially. Creating a net worth statement correctly is considered as fun for some people while some may find it very difficult. Different pre-designed net worth statements are available over web. Net worth Statement Template can best serve you in this regard and will provide you a pattern of net worth statement.
Here is download link for this Net Worth Statement Template,