Net worth of an individual or business is a valuable tool to gauge financial progress from year to year or quarter to quarter. It is, in short, a measurement of what you own and what you owe. If what you own is valued greater than what you owe, you have a positive net worth. If your debts and other liabilities outweigh your assets, you have a negative net worth. This information is most useful when considered over the long term, rather than just as a snapshot moment in time.
A CPA in Tampa from Reliance Consulting, LLC, will conduct a free financial health checkup for you if you wish, and one of the key components of that checkup is a determination of net worth. Again, the bottom line result should be taken with a grain of salt. For most people, a financial situation is fluid. Today’s negative net worth could very well become positive tomorrow. And a certified public accountant from Reliance can provide the advice and guidance you need to make sure it stays on the positive side of the ledger.
The simplest way to calculate your net worth is to follow these steps:
- List current, fixed, and intangible assets
- List current and non-current liabilities
- Subtract total liabilities from total assets
Of course, it’s not always a simple matter to determine precise numbers for your assets and liabilities, a process made even more complicated by the different classifications for each. That’s why it’s a good idea to get help from a CPA from Reliance, where individuals and businesses throughout West Central Florida have found reliable, expert accounting and tax advice since 1984. Contact us today, and we’ll get started with your free financial health checkup.