Which document is most important when working with a client to develop an initial budget as part of a Client Action Plan?

When developing an initial budget as part of a Client Action Plan, the most important document is the pay stub. The pay stub provides detailed information about an individual's income, including gross earnings, net pay, and any deductions. This information is critical for assessing the client's current financial situation and understanding their cash flow. It helps in identifying how much money is available for expenses, savings, and debt repayment after considering taxes and other deductions.

While a tax return can provide insights into annual income and tax obligations, it does not reflect the client's current income situation as accurately as a pay stub does. A bank statement shows transactions and balances but lacks the breakdown of income versus deductions, which is necessary for budgeting. A credit report, although important for assessing creditworthiness, does not provide details about the client's income or spending capacity critical for creating a realistic budget.

Thus, a pay stub serves as the most direct and relevant source of income data needed to establish a solid financial foundation within the Client Action Plan.