How to Prepare a Net Worth Statement and Track Your Wealth

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Track your Wealth with a Personal Net Worth Statement

Many of our clients turn to Plumb Family CFO because they have a complicated financial life and need help preparing their net worth statement. By having a clear picture of their wealth, including assets and liabilities, they can make better decisions with their investments and long-term financial goals.

What is a Net Worth Statement?

Net Worth = Assets – Liabilities

Let’s start with the basics.  A net worth statement is a personal balance sheet.  It lists your assets and liabilities.  Assets are items listed that have cash value (or can be converted to cash).  These assets typically include any money that is in your bank account, retirement account, investment accounts, and major items such as real estate or automobiles and other valuable property.  Liabilities are the debts or expenses that you owe. These include: bills, loans, mortgages, etc.

Need help with bill pay? Top 5 signs that you should hire a personal bill payer

How to Prepare a Net Worth Statement

There is technology available to help you track your net worth, or you can start with a simple spreadsheet.  For people who have a high net worth, it is beneficial for them to use a professional accounting firm to help them track their income and expenses.  To calculate your net worth, you subtract your liabilities from your assets.

Need help with your personal accounting to better track your wealth?

With great wealth comes great responsibility. There is complexity that comes with wealth, including high volumes of bills and income and expenses to track. Setting up a net worth statement or bill pay schedule with the appropriate checks and balances is not an easy task.

At Plumb, we offer personal CFO and bill pay services to ensure that our client’s finances are efficiently tracked and bills are paid, so they can focus their time on enjoying life and have financial peace of mind.

Article: A Corporate Approach to High-Net-Worth Individuals 

Back-Office Accounting Services for High-Net-Worth include:

net worth statement

 

For more information on Plumb Family CFO – or to receive a quote for bill pay and reporting services, fill out the form below:

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Tax Deduction Survey for Tax Season

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Take the Tax Deduction Quiz!

Just in time for tax season

Do you think you know what qualifies as a tax deduction?  Here at Plumb, an outsourced accounting firm in San Diego and Orange County, we have a full team of accounting professionals who organize our client’s financials to get prepared for filing tax returns.  We are not a CPA firm, rather a company that supports businesses and high-net-worth families with their part-time and outsourced accounting needs.

Whether you are a CPA, tax professional, accountant or simply handle your own personal tax returns, test your knowledge with this quiz!

 >> Tax Deduction Quiz! <<

Plumb works in partnership with our client’s CPAs to handle all the preliminary tax work for year-end.  With our customized 7-Step Process, Plumb delivers an Annual Tax Organizer, consisting of a one-page tax summary sheet outlining information sent to the CPA.  With our pre-tax accounting services, it ensures accurate record-keeping, and reconciliation of all asset accounts.  For more information on our Annual Tax Organizer, click here.

Pre-Tax Accounting Services:

  • Tracking and recording 1099’s,
  • Tracking and recording charitable contributions
    • Any contribution over $250 must have a letter or receipt
  • Tracking and recording medical expenses
  • Tracking and recording sales of stock
    • Enter gross proceeds and gross cost basis
  • Record and calculate Gross Distribution, Taxable amount and taxes withheld from Wages, Pensions or Gambling Winnings
  • Re-classify income per 1099
  • Verify 1099-G; money received from State & Local Tax Refunds

If you want to experience financial peace of mind this tax season, Plumb is here to help.  

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Personal Concierge Services for the Frequent Traveler

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Luxury travel and relaxation is a top priority for many of our Family CFO clients.  With their extended stays away from home, many entrepreneurs and affluent families have a lot of responsibilities to keep organized. At Plumb Family CFO, our goal is to add simplicity and clarity to our clients’ financial lives. This gives them peace of mind while traveling the globe.

Our personal concierge services can be customized to meet the needs of any situation, with a wide range of projects and oversight. Client’s can take a long-term summer vacation and not have to worry about missing a bill or paying their household staff.

Personal Concierge Services:

  • Calendar Management
  • Bill Pay
  • Mail Services
  • Payroll for Household Staff
  • General Errands

“As a long-term client, I count on Plumb Family CFO to not only help organize my financial life, but also take care of other personal tasks.”

Frequent Traveler Case Study:

Background:

A successful business owner, actively engaged in day-to-day operations, begins traveling the world on a more regular basis.

Personal Concierge Services Provided by Plumb Family CFO:

  • Calendar, email and personal files were set up virtually to allow shared access at anytime
  • Event and travel calendar were kept up-to-date
  • All requests for donations, appointments and investment opportunities were initially screened by Plumb
  • Processed payroll for household employees
  • Handled HR duties for household employees
  • Created financial calendar of due dates and paid bills
  • Bank and credit card reconciliation

Outcome:

  • Well-organized calendar, with no event or meeting conflicts
  • Client spends less time searching through emails and proposals
  • Bills are paid on time
  • Peace of mind – more time to enjoy life and take care of business priorities

Read More: Frequent Traveler Case Study

Ready to Simplify your Life and Take Advantage of Personal Concierge Services?

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