To get an accurate picture of what you are worth, you need to list and compare what you own and what you owe. This way you can see everything.
    
Assets                                                                               Liabilities 
    
Land and buildings  $5,000,000.00    
                                                                                  Term loans  $2,000,000.00
Fonterra shares  $550,000.00    
                                                                                  Over draft  $100,000.00
Livestock  $650,000.00    
                                                                                  Credit cards  $20,000.00
Plant  $150,000.00    
                                                                                  HP  $50,000.00
Investments  $250,000.00    
    
Vehicles  $125,000.00    
    
Contents  $130,000.00    
    
    
Total  $6,855,000.00                                                Total  $2,170,000.00
    
Equity Position  $4,685,000.00    
    
Equity percentage 68%   

One you have established what you’re worth, you can get a sense of what you are putting at risk in your business and personal life. This equity position is what we are wanting to grow, to help you and your family plan for the future. 
Please note; there is some debate around the value of land and buildings etc., but it is important that you do your sums and provide an accurate value.
Every person and business will have a very different equity position. An accountant should not judge you for having a lot of debt, or not having enough savings. Our job is to help you put in place strong plans for the future and to do this you need to be as transparent as possible when it comes to talking about your finances so that everything can be accounted for. Only then can you truly know your current position!

Why is this so important? Your equity position is an important factor that is taken into consideration when banks are offering you an interest rate or when you’re applying for a new bank loan. Your equity position ultimately influences your finances as you move forward.
Knowing your current position will also help you as you plan your next step to business success, be it growth, succession or consolidation.