Q:

How do you create a template for a personal balance sheet?

A:

Quick Answer

To create a template for a personal balance sheet, consider the fundamental equation, calculate assets, liabilities and equity, then list the information appropriately, reports the QuickBooks website. Calculate all data and then place into the appropriate asset, liability or equity group. List assets in their own column, displaying the total asset amount. In the next column, list both liabilities and equity, showing the respective totals for each group. Free balance sheet templates are also available online, notes the Houston Chronicle.

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Full Answer

Balance sheets evaluate financial health and personal net worth, states the Houston Chronicle.The fundamental equation of a balance sheet states that assets are equal to the sum of liabilities and equity, reports QuickBooks. Investors can modify this equation to gain a different financial perspective. Assets consist of checking and savings account balances, cash, money market balances and other investment accounts, notes the Houston Chronicle. Preparers should list assets by liquidity, starting with cash and then moving to investments.

Liabilities consist of operational costs, debt and material expenses, states QuickBooks. Liabilities can be current or fixed, with fixed liabilities representing debts due after one year. Equity represents ownership, or investment. Common personal equity items are retained earnings or business interests, mentions the Houston Chronicle.

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