Cash Flow & Balance Sheet Analysis

Cash flow is just as important to an individual or a household as it is to a business. With a positive cash flow, financial goals will be in sight, even if they are years in they future. But with a negative cash flow, those goals will recede into the distance. That’s why a comprehensive financial plan from Ivy League Financial Advisors incorporates cash flow and balance sheet analysis at the start of the engagement.

We begin with a Data Collection Form that is completed by every new client. The information compiled on the form is compared to original documentation to ensure accuracy and completeness. With information in-hand, we develop a detailed look at a client’s income and expenses. With this exact picture of where a client stands financially, we build a projection of income and expenses that’s based on solid information, not on guesswork.

Our balance sheet summary emerges from the same data collection and analysis process. The balance sheet (also known as “net worth” statement) shows the assets that a person or household have today to help fund their future goals. As with cash flow, we provide a detailed projection of the balance sheet, which is supplemented by a more general look further down the road at a client’s financial condition.

Among the key questions that will be answered through looking at a cash flow summary, and balance sheet analysis are:

  • What is my monthly cash flow?
  • How much am I worth—both in net assets and in “investable” assets?
  • Do I have an adequate emergency fund for unexpected expenses?
  • Do I have too much debt? How can I reduce it and manage it more effectively?
  • Am I budgeting my money properly each month? Where can changes be made?
  • What are the key elements of my credit score and credit report?

Want to understand your cash flow, determine your net worth, and get on track financially? Contact us for a free initial consultation.