Staying on top of the business tree, you have to know your numbers. This includes knowing your net-worth. Consider the net-worth an indicator for when you can secure more supplies, when your company can afford a new car, or open a new outlet.
Sometimes, we take for fore granted, mildly forgetting that some of the ‘things’ we call assets could actually be a liability.
For instance, a luxury car is an asset if it brings in more cash-flow, especially where it is employed running the luxury end of the
Naturally, your net worth is built off the accurate calculations of your assets and your liabilities. However, in running the numbers, take note to not consider an asset what in actual fact is a liability.
Casey Bond puts the net worth issue in brighter light in her article, where she pointed thus:
The formula for calculating net worth is simple: Add up everything you own that has value (assets) and then subtract everything you owe (liabilities). However, figuring out what belongs in those two categories can be a bit tricky.
What is your net worth? Read full article here.