A net worth statement is a record of the bottom line worth of a company or even a person’s belongings. It basically tracks the assets and liabilities of the business or person.
Anything that is of some worth and which can increase in value can be classified under assets where anything that incurs costs or depreciation can be classified as liabilities. There will always be assets and liabilities in a business or on a person.
It is a useful exercise to draw up a net worth statement to identify the items that are of value and those that do not have value but rather incur costs. This will identify clearly some of the items in our business or life that can be cleared out and to bring in more that have value which will increase our asset list.
There is a final column of information at the bottom of the net worth statement where the net worth is computed from the assets and liabilities columns. If this were a formal document which could be generated by auditors or professional accountants, signatories are required to validate the statement.
A net worth statement template may require the following information:
* Business or person’s identification
* Date of statement
* Assets column
* Personal Property
* Non-liquid investments
* Total Assets
* Liabilities column
* Current Bills
* Taxes Due
* Total Liabilities
Consider the attached sample template for your convenience.