What is a financial statement
A financial statement is a debt adviser’s most important tool. It shows the details of a client’s overall financial situation including what they spend their income on and helps identify where the client can increase their income or reduce their expenditure. It must show a true and accurate assessment of the client’s circumstances.
It also acts as a plan for the future development of the case by helping to inform what debt options may be available to the client.
It is a Financial Conduct Authority (FCA) requirement that clients confirm the accuracy of the financial statement before it is sent to creditors. It is good practice to ask the client to check and sign that the financial statement is accurate to the best of their knowledge.