Defining equity

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