This report lists assets and liabilities from the following sources:
•Reconciled account balances
•Customer and Supplier accounts
•Asset and liability accounts
•Physical accounts
The Net Worth is calculated from these figures in the current month.
The report shows the cash at the bank, current assets and long-term assets at the top of the report, and moves to the current and long-term liabilities at the end of the report.
Note: The Net Worth report shows your true net worth only if you record all your assets and liabilities.
Accounts with a credit balance are listed on the asset side while accounts that are overdrawn appear on the liability side.
Physical accounts set-up as Commodity and Livestock accounts list the Qty and values of any commodity or livestock on hand.
Fixed Asset accounts record your capital assets such as house, car, land and machinery. The values shown should be realistic market values and not depreciated taxation values. Taxation values usually do not allow you to show your true net worth.
If Customer and/or Supplier accounts are used the balance of the sub-accounts is shown.
From the total assets and liabilities the percentage equity and net worth are calculated as per the accounting equation:
Assets - Liabilities + Owner's Equity (Net Worth)
Using Phoenix where sub-accounts are included, the total value for Physical sub-account will be displayed along with the number or quantity on hand and the individual valuation.
To display the Net worth including the sub-accounts, click onto the “options” and tick the box beside “Show Sub-Accounts”
You can also choose not to show accounts in the Net Worth report which opened and closed with a $0 balance for the report period. Simply select “Exclude Accounts with Zero Balance” under “Options”.
