By: Faizan Haq, Editor-in-Chief and Publisher, Your Bliss Magazine and CEO, Manage Your Business, LLC

In business looking in the financial mirror with accuracy is important. That is where you will find out whether you are making good financial decisions or not. This is why the banks periodically require you to provide financial statements. However, before the banks request one from you, you should periodically update yourself about the state of your financial matters. See your true reflection in the financial mirror.

Numerous online templates are readily available for compiling financial information. Creating a comprehensive overview is straightforward. You can list all your assets, encompassing banking, investments, your 401k, the equity in your assets, including your property, specifying what is paid off and what remains, you have now begun to draw your image in the financial mirror. If anything, detailing your liabilities complements this approach, resulting in a concise statement or financial reflection. Determining your net worth involves subtracting liabilities from assets. While the initial outlook for startups may seem daunting, there's room for improvement as you update your financial statement.

Effective cash flow management plays an important role; consistently allocating funds to savings initiates the process of building your net worth gradually. Whether you're seeking a loan, embarking on a business venture, or monitoring personal or business finances, assessing your financial status is a prerequisite. Think of it like looking in a mirror; that's what a financial statement is all about, it reflects how are you looking financially.

Updating your financial statements regularly is a smart business practice. Whether you're borrowing from a bank or managing personal loans like student loans or a mortgage, it's important to develop a habit of reviewing your financial details. Many people who use credit cards may incur additional charges if they don't pay on time, or don’t pay attention. It may lead to paying high interest rates. Carefully avoid that by examining your credit card statements, which helps you to understand the cost of your purchases and avoid being in this situation. We shall address this in a separate article in detail.

Maintaining accurate financial records is essential in many instances. Just as it is important to dress up in the morning before you leave for work. You want to look your best. While banks may require periodic updates, it is wise to proactively monitor your financial status independently. Utilizing online templates simplifies the process of compiling assets and liabilities, allowing for a clearer picture of your financial standing. We are uploading a simple template on our website for you to get started. Good luck!