As a small business owner, having a guide to compiling personal financial statements is crucial for evaluating your financial health and ensuring compliance with generally accepted accounting principles (GAAP). These financial statements are essential for monitoring the health of your finances and guiding important decisions.
In this guide, we’ll look at the key components of compiling personal financial statements and explore when it’s beneficial to use non-GAAP-compliant reports and how they differ from GAAP standards. We’ll also examine the role CPAs play during the assembly procedure.
Welcome to your guide on compiling personal financial statements!
Understanding Personal Financial Statements
Personal financial statements are documents that provide an overview of your estimated current assets, liabilities, and income over a given period.
The Importance of Personal Financial Statements
By tracking changes in your wealth, personal financial statements can provide insight into how to make informed decisions regarding future investments.
Key Components of a Personal Financial Statement Compilation
- Assets: Assets include everything you own, such as cash, real estate properties, stocks, and bonds.
- Liabilities: All debts, including mortgages, credit card balances, and loans, fall under this category.
- Income: Your total earnings from various sources during the specified period are detailed here.
Make sure to keep your financial statements up-to-date and accurate for the most comprehensive information.
Consult a CPA
A CPA can help you successfully compile personal financial statements with your priorities and goals in mind to ensure accurate information so you can make informed decisions. Contact Scharf Pera & Co., PLLC, to work with a CPA and better understand your financial statements with our audit and attestation services.