My Personal Routine to Make Financial Statements

 

I always recommend every person must have to make routine for making financial statements because with this, we can take all the benefits of accounting for growth of our wealth and control on our expenses and make better way our budgeted income statement and balance sheet. 

Ok, I start to tell my routine

1. Daily Account of My Expenses and Incomes 

 Every day, morning, I remember previous day, my expenses and incomes and included in my income and expenditure account. I keep it cash and bank basis. I do not keep it accrual basis. 

It is helpful for me to tell what amount of profit or loss at the end of month. It helps me, next month in which area, I have to invest my time to earn and which opportunity, I can achieve. It helps me to make strategy to control my expenses. 

2. Monthly Keep my Balance Sheet

At the End of month, I make my personal balance sheet. I make it from my income and expenditure account, my bank statement, from my paytm, upi and Google pay transaction records. In this balance sheet. I took opening balance of assets and liability and add the new value either purchase or sale of asset side in my balance sheet. So, my balance sheet shows my financial position at the end of month. 

3. Monthly Keep My Revenue Accounts 

I have different sources of revenue. So, At the end of month, I spend my time to maintain these accounts. For making this account, I find the trend of revenue. Second, I find how to use this revenue money. 

Either, I consume it for making new asset with this money. So, In this account, I show use of this revenue 

4. Monthly Keep My Investment Accounts 

I love to invest every month. I have kept all the investment accounts like

share market investment account

mutual fund investment account

real estate investment account

Gold investment account

Plants and Trees Investment account

Animal Stock Investment account

I show new investment in these account and I can assess specific investment account total at the end of month. 

These are the financial statements, I keep for getting financial freedom in my life.