Personal Financial Statements

Every individual has a unique financial life–no two are exactly the same. Specific concerns, needs, histories, and goals factor in to each person’s financial story. The personal financial statement (PFS) is a way to record an individual’s financial status, acting as a mirror to reflect their current financial situation. To have a PFS drawn up, you will need the help of a certified public accountant.

Businesses have balance sheets, people have personal financial statements. These can disclose basic data like annual income along with personal identifiers, like your name, social security number, contact information, and some business details. A PFS will also list a person’s assets and liabilities. These may include things such as:

  • Cash available
  • Personal and intellectual property
  • Stocks and bonds
  • Real estate
  • Automobiles
  • Mortgages
  • Line of credit
  • Credit card debt

A personal financial statement highlights the difference between what is owned and what is owed. It helps to determine financial worth of an individual, married couple, or family at a specific point in time and can be essential when applying for financing on large purchases. While a PFS may include some general information about any businesses you own, it is not a comprehensive outline of your business-related finances. Here are some specific instances in which a PFS could be necessary:

Lending institutions value a PFS because it gives them a glimpse into your financial health and helps them to determine if you will be compatible with their organization. Keeping up-to-date records is vital so that you have what you need on hand when it comes time to draft your PFS. At NMS Certified Public Accountants, you can rely on our Ohio CPAs to ensure that you always have the paperwork you need for your next big life change.

In order for your local accountant to begin compiling your PFS, they will need access to various personal and financial records, including:

  • Checkbooks
  • Broker's Statements
  • Insurance Policies and Schedules
  • Wills
  • Leases
  • Contents of Vault or Safe Deposit
  • Tax Returns
  • Business Financial Records
  • Personal Inquiries

Financial growth begins with understanding where you are right now. Having a current personal financial statement available provides a snapshot of your personal net worth and is a great first step to financial goal-setting. 

Partner With Your Trusted Local Accountant

At NMS Certified Public Accountants, we are skilled Ohio CPAs who are guided by professional standards in our efforts to facilitate our clients’ goals. If you are in need of a personal financial statement as you venture into a new chapter of your life, or just want to accurately gauge your current financial situation, please contact us. We are ready to help.

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