This archive report was first published on 30 November 2019.
As the holiday season approaches, many of us are looking forward to a well-deserved break. However, before we shut down our desks for the year, it's crucial to take stock of our finances and make sure we're on the right track.
According to certified accountant Bett Kinyatti, the end of the calendar year is an excellent time to wrap up your financial year. This involves preparing your profit and loss account and balance sheet.
A profit and loss account is a summary of your monthly income and expenditure, while a balance sheet provides a snapshot of your financial situation as of a specific date, such as December 31st, 2019.
Computing your personal net worth is also essential. This involves subtracting your liabilities from your assets to determine where you stand financially.
Comparing your net worth to previous years can help you identify trends and make informed decisions about your financial future.
It's essential to be honest when evaluating your finances, avoiding the temptation to overvalue your assets or hide liabilities. Using apps and websites can make it easier to generate a balance sheet template and track your progress.
By taking control of your finances, you can make informed decisions about your financial future and achieve stability.
