Equity = Assets - Liabilities
Equity is the net amount of funds invested in a business by its owners. It is also calculated as the difference between the total of all recorded assets and liabilities on an entity's balance sheet.
Equity also refers to common stock and preferred stock which are different types of securities. As a business owner your overall goal is to always have your recorded assets in total to be more than your total liabilities. As you establish your budgets and the future position of your business, keep this in mind.
Start with establishing your policy and procedures. Set your goals today!
A person who never made a mistake never tried anything new." - Albert Einstein
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.