Analyzing Personal Financial Statements and Tax Returns


This class is designed for bankers who require an understanding of the importance of information contained in individual tax returns and personal financial statements. Retail lenders, branch managers, assistant branch managers, and commercial lenders will all benefit from the information presented in this program. Participants in this course should dress casually and bring a calculator. All other materials, including a course manual, will be provided.

The ability to understand and analyze the information contained in personal income tax returns is an important aspect of qualifying retail loan customers. This program will assist lenders in interpreting the information contained in personal tax returns in order to determine the ability of customers to service debt. Attendees will work with federal tax return forms and schedules to help identify the borrowing capability of customers. Program participants will also learn about the relevance of personal financial statements to the lending process and how to use the information
contained in personal financial statements in combination with tax returns.

Topics to be covered:
➢ Understanding those sections of the tax return that are important in order to determine a borrower’s ability to repay loans
➢ How to identify cash inflows and cash outflows from tax returns
➢ Identifying the relevance of information contained in various Tax Schedules
➢ Personal Financial Statements and their importance
➢ Understanding the Cash flow of small businesses (sole proprietorship, partnerships and Limited Liability Companies (LLCs)
➢ Case Studies utilizing a variety of different scenarios

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