How To Make A Personal Income Statement And Balance Sheet
With both the income and expense section done, Aiman can start to assemble the complete income statement, by combining the two sections and calculating his net result for the month of January, by subtracting his total monthly expenses from his total monthly income.
A perfect tool for this is a personal balance sheet. Let’s get started! The function of a balance sheet is to present a snapshot of your financial position at any given time. The key here is snapshot. Where the Income Statement presents your net result over a given period (month, quarter, year), the balance only shows you a single moment in time.
Enter the total amount into the income statement as the selling and administrative expenses line item. It’s located directly below the gross margin line. 7. Calculate Your Income Subtract the selling and administrative expenses.
A personal financial statement, or PFS, is a document or set of documents that outlines a person or family’s financial position. The balance sheet portion of a PFS exhibits your assets and liabilities, or net worth. Some people.