Answer:
The two main types are personal balance sheets and cash flow statements.
One, a personal balance sheet is an assessment of what you own and what you owe. It's important to know where you stand financially, and a personal balance sheet gives an individual a financial outlook. The steps include, listing your assets (valuable items and their values). Then, list any debt, liabilities, or any amounts of money you owe. Lastly, find your net worth by subtracting your liabilities from your assets.
Two, a cash flow statement is a record of income and expenditures during a given time period. It's important to know your cash flow to see if you have a surplus of cash that could possibly be invested. To create a cash flow statement, first record any income or money you receive. Next record any expenditures (spending). Lastly, subtract your expenditures from your income to find your cash flow for a specific time period.