is this financial statement layout acceptable to banks

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is this financial statement layout acceptable to banks

Arty Fresh
Member since 2019 · 42 posts · 11 votes

what do you guys think of rich dads financial statement ? this one --> https://www.richdad.com/MediaL...

I was thinking of hiring a bookkeeper for $5-10 month to do all this for me and I can just send them my emails of my paycheck deposits and my email alerts for each transaction and save time by having someone else do it for me.

I understand that you do your own financial statement etc but at this point I rather just pay someone $5 to do it for me. its only 5 lol. but I want to give them an example to follow.

I want to receive monthly statements. what you guys think of everything listed in that one?

I have 0 assets at the moment but looking to change that soon by getting two rental properties. I have a bi-weekly check, expenses and liabilities (credit cards) that I am working on paying off.

do I have to tell the bookkeeper all my credit cards and the balance I owe on them? probably more likely correct?

what other info should I give to the book keeper

I am 33yr and just learned about a "financial statement" from reading rich dads/Robert Kiyosaki books. where he says how he goes to a bank and ask for a 10-20million dollar loan and provides the financial statement, then he gets 20 million loan/debt to invest in real estate and then pays back the bank and himself. I want to achieve that type of level. I am at the bottom now. but want to work hard to do the something Robert Kiyosaki did

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Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y

What a bank requires will be dependent on what you are financing. 

They may need financials specific to a property and usually a personal financial statement which you can do yourself - just look on google for examples. 

This is why it is better to use someone that understands your business - so IMO ask your cpa for a local person to help you.  

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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    Not sure anyone will do your bookkeeping for 5-10$ total and have it worth much.  Usually good bookkeepers charge an hourly rate. And that rate may be different based on location  but you wont get much for five bux

    You will need to send them the information from your bank and credit card accounts with some input for them how you want stuff coded. 

    You can easily do it yourself in excel or similar. Or hire a local person to do it for you. Once the numbers are in a system it is easy to create financial statements 

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  • Arty Fresh
    OP
    Member since 2019 · 42 posts · 11 votes
    6y
    Originally posted by @Mary M.:

    Not sure anyone will do your bookkeeping for 5-10$ total and have it worth much.  Usually good bookkeepers charge an hourly rate. And that rate may be different based on location  but you wont get much for five bux

    You will need to send them the information from your bank and credit card accounts with some input for them how you want stuff coded. 

    You can easily do it yourself in excel or similar. Or hire a local person to do it for you. Once the numbers are in a system it is easy to create financial statements 

     I found a lot of people who will do it for $5-20. so going with the professional $5 from Pakistan. its $5 for 6hrs of work. so the 6 hours should cover the whole month. he's only going to receive my bank alert emails that I will forward to his emails and then he'll log it into the financial statement. each transaction should take like 2-3 minutes to put it in. 

    so Mary what did you think of the financial statement in the link I provided? from Robert Kiyosaki 

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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    What is the purpose for the report? 

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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    Btw your banks should have a download feature which would make the entire process much easier.  Financial statements are only as good as the data entered. 

    Also, 2-3 minutes per transaction is way to long.  Should be about 30 seconds or less 

    1Reply
  • Arty Fresh
    OP
    Member since 2019 · 42 posts · 11 votes
    6y

    its an example of a financial statement that I was going to show to the book keeper so they have an example of what type of service I would like from them.

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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    If they are qualified, they will know what a p&l , balance sheet, statement of cash flows, etc is 

    But there are so many different types of finanacial reports, it would be helpful to know what you will use the report for? 

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  • Arty Fresh
    OP
    Member since 2019 · 42 posts · 11 votes
    6y
    Originally posted by @Mary M.:

    If they are qualified, they will know what a p&l , balance sheet, statement of cash flows, etc is 

    But there are so many different types of finanacial reports, it would be helpful to know what you will use the report for? 

    real estate related / a financial statement I can provide to a bank when they require one in order to provide me with a loan

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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    What a bank requires will be dependent on what you are financing. 

    They may need financials specific to a property and usually a personal financial statement which you can do yourself - just look on google for examples. 

    This is why it is better to use someone that understands your business - so IMO ask your cpa for a local person to help you.  

    2Reply
  • Kris L.
    San Antonio, TX · Member since 2019 · 930 posts · 836 votes
    6y

    @Arty Fresh

    Paying an unknown entity in Pakistan sounds like a high risk plan from an identity theft standpoint.

    1Reply
  • Randy S.
    Rental Property Investor · TX · Member since 2016 · 16 posts · 3 votes
    6y

    One of the qualitative factors a bank will give you a "credit rating" on is the quality of financial statements. This rating determines pricing. I would highly recommend not going with a $5-10 / month bookkeeper to compile your financials. If you get asked about something on those financials and you can't explain them, or your "accountant" can not explain why something was put somewhere, it will look bad.

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  • Arty Fresh
    OP
    Member since 2019 · 42 posts · 11 votes
    6y
    Originally posted by @Kris L.:

    @Arty Fresh

    Paying an unknown entity in Pakistan sounds like a high risk plan from an identity theft standpoint.

     I know lol but the only information they are getting is my transactions so they can log it in the books. nothing personal 

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  • Mark S.
    Real Estate Investor · Saint Paul, MN · Member since 2017 · 543 posts · 474 votes
    6y

    @Arty Fresh are you talking about a PFS or doing your annual accounting to tax purposes? The email string is a little confusing to me. If you are truly asking about the PFS a lender asksfor at the start of your professional relationship and on an annual basis, the lender will likely have a preferred format they will provide you. At least that is what I have found with the lenders I work with.

    0Reply
  • Tony Kim
    Rental Property Investor · Los Angeles · Member since 2018 · 844 posts · 1k+ votes
    6y
    Originally posted by @Arty Fresh:
    Originally posted by @Mary M.:

    If they are qualified, they will know what a p&l , balance sheet, statement of cash flows, etc is 

    But there are so many different types of finanacial reports, it would be helpful to know what you will use the report for? 

    real estate related / a financial statement I can provide to a bank when they require one in order to provide me with a loan

    Every bank will have their set of procedures in calculating your DTI ratio. If you hand them a financial report that resembles that non-GAAP report from Kiyosaki, I'm sure they will say thanks and politely take it from you and then toss it into their shredder. Then their next set of requests will be for official documents (i.e., bank statements, mortgage statements, and numerous other stuff) they will need in order to come up with your financial picture.

    If you want to do this for your own information, then I would say that that is a very good idea. Everyone should have a way of tracking their financial progress. I'm sure Kiyosaki is taking a few liberties when saying he hands the bank that exact report to receive 8 figure financing. I have my own spreadsheet that provides a summary of all my properties and investments and their cash in-flows/out-flows which I give to the bank, but only because it helps my lender make sense of all the files I send over.

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