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Support/ Financial Planning/Financial Models

Generating a Balance Sheet for a client

2 min read

The Balance Sheet shows a client's assets and liabilities projected year by year, from the current year through 40 years into the future. It is generated automatically from the client's Fact-Find data - no manual entry is needed on this page.


Opening the Balance Sheet

  1. Open the client's profile.

  2. Click Financial Modelling.

  3. In the right panel, select the Assets & Liabilities tab.

[SCREENSHOT]


What it shows

The Balance Sheet breaks down the client's financial position into asset and liability categories.

Assets

  • Savings and cash

  • Shares and investments

  • Superannuation

  • Primary property

  • Investment property

  • Vehicle

  • Business

Liabilities

  • Home loan

  • Other liabilities - credit cards, personal loans, etc.

Use the year dropdown in the Assets & Liabilities tab to view the projected balance for any specific year. Hover over any point on the chart to see the values for that year.


Data completeness

The Data Completeness panel below the chart shows what percentage of the projection is based on actual Fact-Find data versus assumed defaults. Fields using defaults are listed alongside the default value being applied.

To improve accuracy, click the link to open the Fact-Find and fill in the missing fields, then recalculate.


Recalculating

After updating the client's Fact-Find, click Recalculate at the top of the Financial Modelling page to regenerate the balance sheet with the latest data.


Default assumptions

Where a Fact-Find field is missing, Prospo fills in the gap using these defaults:

  • Property growth rate - 4% p.a.

  • Superannuation return - 7% p.a.

  • Shares growth - 8% p.a.

  • Savings rate - 3% p.a.

  • Vehicle depreciation - 10% p.a.

  • Home loan rate - 6% p.a.

  • Home loan term - 30 years

  • Superannuation guarantee - 11.5%

Defaults are used only when the corresponding Fact-Find field is empty. Filling in actual values will always produce more accurate projections.