If you are a Entrepreneur, Accountant, Tax Attorney, Businessman or Wealthy Individual you already likely know what the 6 Assets you should list on your Financial Statement? Great! But if you don’t know? Maybe this is an article you should read. Because I am going to dive in and share what these 6 Asset classes are?
The six asset classes you want to include on your personal Financial Statement is not only Real Estate property income. But it’s also other income streams like Stocks, Bonds, and definitely NOT your home. We will dive more into this later. You will want to stay tuned because I am preparing you to become a Financially Literate confident business player.
Ok So I appreciate you showing up and reading my Blog post, I do believe I am beginning to have a few heavy hitters from Wall Street read from JP Morgan. I appreciate you guys. 100% And I Thank you. So back to business here. What are the 6 types of Assets Accountants and Business Personalities list on their personal Financial Statement?
Let’s start with an activity as we dive deeper into this thought of what is the six Assets a business individual needs to list on their Financial Statement? And by the way when you finally have enough money and assets to fill out a Financial Statement that day when you see it take shape is liberating. Absolutely. If your just realizing one day that you Made a Million Dollars in one year? This video by Patrick Bet-David is for you. Watch It!
Ok let’s get back to Asset’s. What are the Six Assets types you should list on your Financial Statement?
- Bank Accounts
Bank Accounts mean your Personal Bank Accounts, not your Company Bank Accounts. It should go without saying that Commingling Bank Accounts with your Company’s money and Personal Money should never happen. I hope I don’t have to explain. It’s just bad for business. Capeche? Great Moving on.
2. Stocks
Do you have Stocks in the S&P or an Account with Charles Schwab or Edward Jones? Or even Robinhood? Then you will want to individually list each in Subsections on your Financial Statement. I hope your learning this is the Big Leagues.
3. Receivables
If your a business owner or you have personally loaned money out to your Community your going to want to list Receivables. To take this definition a bit further and be more politically correct with the Accountants who will read this. I grabbed this definition from a reputable source online. Receivables is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. (R) is any amount of money owed by customers for purchases made on credit.
4. Real Estate
Ok this one could be tricky for most who are out there and do not have an Accounting Background. But when your listing your Real Estate assets on your Financial Statement you need to list them correctly. What do I mean by this? We want you to list your Real Estate Assets in a selected manor. Meaning take the Fair Market Value of your Real Estate Asset and write this number down. Now make sure you do not include the sum of the Mortgage you still owe on the Asset or Property. Make Sense? Ok Good! Speaking of Real Estate I want you to go check out this Madman named Ben Mallah.
Ben Mallah’s Youtube channel all about Real Estate is surely to entertain you with how crazy it is. LOL Here is a video from his Channel. Between you and me, I have told Ben several times how much I appreciate his crazy Youtube channel and him as a Investor. He is a solid Big Loveable Bear! LOL Ben taught me personally about 1031 Exchanges and Deferred taxes. These topics will be a post all on it’s own.
And for our last 2 Asset type’s you should list on your Financial Statement? Drum Roll……!
5. BOND’s
It should go without saying you should list your Bond assets on your Financial Statement. After all it is a legitimate Investment Asset. What is the proper definition of a Bond? I grabbed this online and this should help with describing this asset class. Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debt holders.
If you need to brush up on the How the Bond Market Moves and Operates? Please be sure to check out my former post on the subject. Here!
6. Business Value
When sharing this Asset type on your Financial Statement you should consider that you want to share the (NET) Value of your Business. What you listed on your Tax returns. NOT what you think it’s worth. To many business owners I meet have a value that is unrealistic. And fail to consider thier EBITDA and other costs. It becomes a big mess in the end and certainly lead you down to having unrealistic expectations. Be honest and be straight about your Busienss Value. That’s the smart play.
What is the definition of Business Value? It is the standard value measure used in business valuation. A Partner with PWC shared with me today, business value is the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, stockholder equity, fixtures, and utility.
In conclusion you should have picked up some good information from today’s Article and Post. Generally speaking if you look at the Cash flow, and asset patterns on your Financial statement and the Assets you list on this Accounting form you can see where your lacking and where you should add a little value of shore up weaknesses. Thank you so much for reading and IF you have any questions or Requests? Please email me at JamesonDocSharp@Gmail.com and please tell me if I am missing the mark or really making a difference? I love helping others in Business. In fact with so many people who did not help me and blew me off? I feel it’s my duty to be open to helping others.
Thanks everyone Take Care – Please Comment, Like, and Share. And I will catch you on the next artcle.
Bye Bye!
JS