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Step 1
Gather all of your important financial documents. Once you have gotten all documents together, organize them into categories. Specifically, separate documents into assets and liabilities. Make sure to include anything with an economic impact on your business, such as cash, bonds and stocks. You should also separate long term and short term obligations like any outstanding loans from banks or debts to suppliers.
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Step 2
Print out a balance sheet. There are multiple places online that you can download these forms, if you do not have one already. An excellent resource website for business owners is http://toolkit.com. To download a balance sheet, click on the tab that says business tools and from there you will need to sign into the website by giving your email address and creating a password. There are numerous other helpful tools on this site for small business owners.
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Step 3
Make notations of all assets. Your assets should include anything of worth that belongs to your company. You will need to divide them into two types of assets, current and fixed. Current assets are ones that can be quickly liquidated and fixed assets take longer to liquidate. An example of current assets would be cash, inventory and accounts receivable. Fixed assets include buildings, equipment and land.
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Step 4
List your liabilities. Your liabilities are also divided into two different categories, current and long term. Anything that you or your company owes to an outside party would be considered a liability. Wages and accounts payable are current ones, and long term ones might consist of loans or leases.
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Step 5
Calculate your net worth. The net worth of your company is also called equity and it is the difference between the amount of assets and liabilities. The formula for calculating the net worth of your business is an accounting equation that subtracts your total liabilities from your total assets giving the amount of equity.
