As a consumer or business owner, you need to properly manage your expenses from month to month. If you fail to do so, you might end up missing a payment and being hit with a late fee. Or, if the matter escalates even further, your utilities may be cut off or your vehicle may be repossessed. Using the financial statement will help you keep track of your finances, so you can remain out of trouble.
What It Contains
This statement will contain a great deal of information regarding a company or consumer’s finances. Aside from basic information about the consumer or business, the document should also include information regarding your salary, such as your income, bonuses, commissions, dividend incomes, and more. The document should also contain your annual or monthly expenditures. Once the document is fully completed, you’ll know precisely how much you bring in and how much you’re spending each month or year.
How It Is Used
Aside from using this document to keep track of your personal finances, it can also be used for other purposes. When attempting to take out a loan, the bank or lender will want to analyze your current financial situation. Therefore, you will be required to complete and submit this document.