Personal ledger is a book or a file in which records of money are kept. It keeps the information regarding all the debits and credits in one place and makes it easy for people to have a look at a time whenever they want.
A personal ledger statement is a document that shows information about the money received and paid. It can be simple to very complicate depending on the individual user.
What is the purpose of the personal ledger statement?
As the name suggests, the personal ledger is a document that keeps the records of the individual. This statement focuses on a person rather than a group of people. All the transactions carried out by one person can be recorded in the personal ledger statement.
There are many such situations when a person just wants to keep a record of his own debts and credits so that he can focus on his financial health. In this situation, people opt for using a personal ledger instead of a general ledger.
What type of information is mentioned in the personal ledger?
A person who is using and creating a personal ledger statement can be either a creditor or debtor. In case a person is a creditor, he would like to document all the details regarding the purchasing of goods on credit, payment of money to someone or a company are recorded. The person who wants to keep track of the outflow of money can design a personal ledger statement as a credit.
As a debtor, you can also keep a personal ledger account because it will let you remember how much money you have taken as debt and how much you are supposed to return.
What is a personal ledger statement?
Just like any account, a personal ledger account also has account statements. This statement is useful to see the transaction history and total balance. People who struggle with managing their finances can use the personal ledger statement to keep a check on finances.
What are the main benefits of using the personal ledger statement?
A personal ledger statement can be used to show how effectively you manage your debts and credits. So, it also proves your credibility.
Just like any other account statement, a personal ledger statement also comes with lots of benefits. Some of them are listed below:
It is easy to obtain information:
When you have a personal ledger, you don’t need to pay attention to transactions carried out by other people just like a general ledger. You can be more focused on specific types of information. For instance, it is easy to focus on money paid by you to people because the statement clearly divides the debits and credits and shows them individually. You can also customize how and what information you want to view in the statement.
It is helpful in management:
Not everyone is an accounting expert. Account-related operations and management become very difficult for people with zero knowledge. For such people, creating a statement of the personal ledger is very easy. They can easily manage their finances because everything is right in front of them.
The statement can give information about any time period:
Depending on your personal needs, you can choose a small and a large statement based on the time period. If you want to focus on the financial records of the month, the statement will mention each and every transaction that has been carried out in the month.
Personal ledger statement template:
Those who need a statement for official or unofficial purposes can get a template that provides a ready-made statement once all the details are provided to it. The template generates the statement in no time once the user has chosen the type of ledger, the total amount of transactions, and many other details.
There are very less chances of any error if you use a template that can generate a report or statement for you. It is advisable to keep adding your data in a record book and then convert it into a statement so that you can keep a record of transactions that you can use whenever there is a conflict.
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