If family is more important than business, then how come so few business owners have a personal balance sheet? Is it because they feel that they intrinsically know the value of their personal assets and liabilities? Or could it be that they’re fearful of what it may show? But perhaps it’s time for that rude awakening.
Certainly some clients have found it useful for clarifying where they are now and where they need to get to, perhaps for retirement planning. We also see it as a prompt to reflect on life goals and personal development.
Strategies and actions can be developed to bridge any gap. Regular updates will reveal the progress being made in achieving targets, be they financial or other.
And whilst inheritance tax is not a concern for everyone, a personal balance sheet will help value your estate and allow your accountant to estimate the tax liability. It may even make you think about tax planning options.
But even if such a statement is of no use to you, perhaps it would be helpful to those who have responsibility for looking after you when you’re unable to do so yourself or on your death.
And then there’s the bank manager………………