Personal Balance Sheet Template

Personal Balance Tracker
Personal Balance Sheet Template excel

The balance sheet is one of the most vital statements of your finances. It is often used for companies in order to measure the sum total of what the company owns in the form of its assets and compare that with the sum total of what all debts of the company owes or their liabilities. It also is used for your own personal finances which is exactly what the Personal Balance Sheet Template spreadsheet was designed to assist you with. At the end of the day, the Personal Balance Sheet Template is the perfect starting point to gain a little more insight into your own personal finances. This will allow you to easily control your financial future as you will have deeper knowledge about your specific situation financially at any given point in time. The balance sheet will allow you to have a clear understanding of your net worth at any point in time. All you need to do is to subtract the sum total of your assets from the liabilities that you also hold. This will tell you what is known as your equity or more commonly your net worth which is the amount that you own in excess of any debts that you may carry. In this article, we are going to go in-depth on exactly how you will use this spreadsheet tool to better understand your own personal finances and gain control over your financial future.

How to use Personal Balance Sheet Template excel

The Personal Balance Sheet Template spreadsheet is a tool that is great at what it was designed to do which is to give you a better understanding of your own personal financial status at a specific point in time. While the Personal Balance Sheet Template will greatly assist you in your goal to improve your own financial prospects it cannot do the work for you so that means he will need to make use of it properly in order to earn any benefit from it. Go ahead and download the template file and open it using Microsoft excel preferably the version made in 2007 or later. This will be the version of the software that will be most compatible with and present you with the fewest issues. It is possible to run this program using older versions of the software but it is possible that there will be minor problems or instability while running the program on older versions of the software.

Once you have opened the file up you will see two major sections. The first one will be entirely for your assets and it is broken up into different categories for separate asset classes. The first category is going to be for everything that you hold currently and have ready access to. This will include things such as cash as well as inventory and accounts receivable. Go ahead and list out anything that you hold which carries a value that you have ready access to this first area. The next area will have your long-term assets. Here is where you were going to list things like your long-term investments or any property or real estate assets that you hold in Plano holding for five years or longer. Make sure to put any intangible assets here as well. Finally, there will be a section for other assets which is where you will list any miscellaneous assets that you have that do not fit neatly into the other categories which we have already covered.

Once you are done listing all of your assets at the time to move onto the next section which is titled liabilities. This is going to be where you list everything that you owe money on currently. The first section will be for the current liabilities that you carry. These are short-term liabilities which you must pay back fairly soon. This is where you will list things like Accounts Payable, short-term loans, as well as income taxes and other types of taxes or fees that you must pay as a part of your business. After listing all of the short-term liabilities that you carry it is now time to move on to long-term liabilities. These will be liabilities that you owe money on but do not have to pay back entirely for five years or longer. Here you should put all of the long-term debts that you owe as well as any type of deferred income taxes or back taxes that you may also. The last section will be for owners’ equity. This is where you were going to put any kind of retained earnings that are given to the owner of the company that you are running which can be considered a type of liability on your part as it is taken out of your income. There are many other miscellaneous liabilities that do not fit well with the other categories that we have already covered then you more than likely would want to list those here.

Now that you have all of the assets and liabilities that you have listed out neatly it is time to go ahead and do a little bit of math. Luckily the spreadsheet will do the math for you and you will see in the columns that are titled total assets as well as total liabilities a number which will represent the total amount that you have on things that you own as well as the total amount that you owe on your liabilities. If you take these two numbers and subtract them from each other you will be left with your net worth or net balance which is the total amount that you own over what you owe.

Additional tips on how to use Personal Balance Sheet Template excel

The Personal Balance Sheet Template spreadsheet is an incredibly important tool that will greatly assist you in achieving your financial goals. However, it cannot do the work alone and will be best suited for serving an auxiliary purpose along with several other types of forms or spreadsheets that will help you to better track your financial metrics. The Personal Balance Sheet Template will give you easy access to any information that you need to know about your current status financially at any given point in time however it will not tell you anything about what the future looks like. For this, you are going to need to incorporate income and expense trackers. In this way, the personal balance sheet is a great beginners tool that will allow you to get a great understanding of the big picture of your financial portfolio.