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Showing posts from April, 2017

Planning For Your Family's Financial Future

Personal Financial Statements

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Businesses prepare financial statements for the bosses to know the financial situation of their business and  help them in their decision making about the company. With that, do you think we can apply it to our personal life? Definitely YES!
Financial statements mainly consist of the Balance Sheet, Income Statement and Cash Flows Statement.
Balance Sheet (Financial Position)
The balance sheet is comprised of: Assets (business owns), Liabilities (debts) and Equity (Remaining Capital).
We should have a personal balance sheet so that we will know our net worth. Net worth (equity) is computed as Assets - Liabilities. How to do it? Make an inventory of everything you have from cash in bank, cash on hand, car, house, bank loan etc. Then summarize it so that you will have a snapshot.
Example:
Income Statement (Financial Performance)/Cash Flows
The income statement reports the performance of the company whether it's net profit or loss while the cash flows statement shows where the comp…

Wealth Creation

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TAP (Tony Herbosa) on Wealth Creation: "It is not how hard you work to get that paycheck, it is how smart you work after you get that paycheck; that is, how you save as much of it and then deploy it wisely in "bagger" assets over time.
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"Accumulating knowledge is easy. Accumulating the right understanding and the right instincts are the hardest."

Business Closure

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There are many reasons why businesses close. It may be voluntary or involuntary. In that case, one has to know how to properly close his/her business to avoid future financial obligations to the government. Closing the business is undoing what you did during the registration process: Closure of business with DTI Letter request signed by the owner Affidavit of cancellation of the registered business name stating the reason of closure and that owner has no outstanding financial obligation at the time of closure Original copy of the business name certificate and the duplicate copy of the application form SEC Same as above LGU (Local Government Unit - Mayor's permit, barangay permit) Affidavit of Gross indicating the reason of closure and date of closure Mayor's permit Financial statements Sketch Last Payment Certificate of closure from the barangay captain indicating date of closure Notice and clearances from other government agencies - if your business is registered with CH…

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