WHAT IS EQUITY IN BUSINESS AND HOW TO CALCULATE IT

 Hello,

A few years ago, I was going through the financial reports of my business and was trying to make sense of it all. During my sneak peek, I got a chance to look at the business equity. As a young and amateur business owner, I was not sure about this term. So, I asked my bookkeeper about it. He told me that it is the net worth of the business after its debts have been paid off. However, you need to understand the assets and liabilities of the business to get this number. The balance sheet comes in handy in this regard. Here is an article that will help you understand this in detail.

https://www.agibookkeeping.com.au/what-is-equity-in-business-and-how-to-calculate-it/





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