Balance Sheets for Investment Accounts – How to Set Them Up and Maintain Them

If you are an investor, you should keep track of balance sheets for each investment account you are involved in, particularly if you have put your money into more than one investment opportunity. Every account should possess an individual ledger for the purpose of officially recording your transactions. You should begin your balance sheets for accounts by first setting up a name for the account. After that, you should immediately start keeping track of any activity that takes place on the account. If you deposit money, buy stocks, or perform any other activity, include it on the sheet with the date the activity occurred and the amount of money that was added to the account.

Then, as you begin to receive recording statements from your broker’s account, it is your job to dutifully file these on your account every month. The reason for this is to keep records for tax purposes. You should be keeping individual sheets for accounts for each of your investments, as opposed to simply combining all of them into one, because you want to be able to pull up these records at any point in time.

Investors who are really serious about their sheets for accounts use software for backup record keeping lest the permanent hard copies of an account should be lost or destroyed. Thus, you can have a fallback for the important purpose of keeping accurate and up-to-date sheets for your all of your accounts. To make use of computer backups, employ the use of a scanner to create digital copies of your sheets that are then stored on the hard drive of your computer. Like any other tax document, it is important that you maintain the information for your accounts for a minimum of seven years. That way, if you are audited, you have valid accounts to show the IRS.

In summary, you should keep a current ledger or balance sheet for all your active investments for your own records as well to satisfy filing reports. If you feel inadequate when it comes to handling the creation of these sheets for accounts on your own, you can get in touch with a registered financial consultant who is knowledgeable in this type of accounts. Protecting yourself and your money is important in any investment, which is why keeping accurate records is so vital.For more information on investing in investment opportunities usually or normally not found in the marketplace, click here!



Source by Sean L Johnson

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