As a business owner it is essential to know the value of your company. Fortunately, you can easily calculate the book value of your company if you have access to your balance sheet. Calculate your company's value regularly to see if it climbs, declines or remains stagnant.
Locate the assets section of the balance sheet. At the bottom of the section you will find the total assets; take note of this number. For the sake of example, assume that your business has assets of $70,000.
Find the total liabilities on your balance sheet. The total liabilities are listed at the bottom of the liabilities section. For example, assume that you have liabilities of $30,000.
Subtract the liabilities from the assets. With assets of $70,000 and liabilities of $30,000, you have a book value of $40,000.
Warning
Be aware that the book value is a quick and dirty measure of a company's worth. It does not take into account market conditions that can affect the real value of your business.
