How to Create and Sample Personal Financial Report Excel Format

 How to Create and Sample Personal Financial Report Excel Format

 How to Create and Sample Personal Financial Report Excel Format

Feel like your financial management is a mess without clear documentation? This means you need a personal financial report, here! How to create and sample a personal financial report in excel format? Read more in this article!

What is a Personal Financial Statement?

Personal financial bookkeeping or personal financial statements is a term used for a document or spreadsheet that a person creates to describe that person's financial position at a particular time.

Also read: Asset and Liability Management to Achieve Financial Freedom

Purpose of Making Personal Financial Statements

Then, is every individual obliged to make a personal financial report? Of course, this is the choice of each individual, but it would be better if you have it because this financial report has many functions and benefits, including the following.

Ensuring the Fulfillment of Your Financial Goals

What is your goal to earn money? Is it only to fulfill the needs of daily life? Everyone has their own financial goals and financial reports can help you manage your income and expenses in such a way that your financial goals can be achieved.

Managing Expenses

Without financial reports, someone will tend to be consumptive. Financial reports can help you determine which expenses should be prioritized and which ones can be postponed.

Family Financial Security

When your income and expenses are well-planned, you can avoid the risk of running out of funds when there is an urgent need, which can hurt your family's future.

Allocation for Investment

Investment is one of the most important things that many Indonesians don't understand. By investing properly, you can earn passive income that can ensure the smooth flow of personal and family cash. Financial reports can help you set aside some funds for investment purposes.

How to Make a Simple Personal Financial Statement

How to make a personal financial report is actually quite simple. First of all, you must understand what components are contained in a personal financial statement. In general, the main components that must be present in your personal financial statements are a balance sheet of assets or wealth and a balance sheet of liabilities. To better understand it, you can see an example of a personal financial report excel format at the end of the discussion of this article.

Asset or Wealth Balance

Some of the components that you can include in the asset balance section are:

• Cash

• Balance on savings account

• The total balance of the retirement account

• Accounts receivable

• Investment assets that you have

Balance of Liability

Some of the expenses that you can include in the liability section of the balance sheet:

• Debt

• Unpaid installments

• Unpaid taxes

• Property mortgage

Then, how to make personal financial bookkeeping?

• Make a spreadsheet in the excel program which consists of 2 columns, namely the asset section and the liability section. Usually, the assets column is on the left while the liabilities are on the right. You also need 1 additional column to show your net worth.

• Include a list of assets and liabilities and their values.

• Add up total assets and liabilities separately with the help of excel formula (=SUM)

• Determine the value of your net worth with the help of excel formulas. The trick, in an empty cell, you can type the formula = [total asset cell] – [total liability cell], then press enter.

Example of Personal Financial Report Excel Format

To be able to make you understand more about how to make personal financial reports, see the example of the personal financial report excel format below!

That's a discussion regarding the importance of personal financial reports and examples of personal finance excel formats that you can use as references.

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Reference:

Cory Mitchell, Personal Financial Statement. Retrieved date: August 12, 2021.

Financial Wolves, Why is Personal Finance Important. Retrieved date: August 12, 2021.

Swift Forms, Personal Financial Statements. Retrieved date: August 12, 2021.