How to Find and Calculate Your Total Assets

Understanding your total assets is fundamental to assessing financial health for individuals and businesses. This figure represents the total economic value of everything you own. Calculating total assets provides a clear picture of your financial standing, essential for informed decisions about investments, debt, and future planning.

Understanding What Constitutes Assets

An asset is anything owned that has economic value, meaning it can provide future benefit or be converted into cash. Assets are generally categorized based on how quickly they can be converted to cash, which is known as their liquidity. This distinction helps in understanding both immediate financial flexibility and long-term financial strength.

Current assets are those that can be converted into cash or used up within one year. Examples for an individual include cash in checking and savings accounts, money market accounts, and short-term investments like marketable securities. For a small business, current assets also include accounts receivable (money owed by customers) and inventory (goods available for sale). These assets are important for covering daily expenses and short-term obligations.

Non-current assets, also known as long-term or fixed assets, are those not expected to be converted into cash or consumed within one year. These assets are held for long-term use. Common examples for individuals include real estate (such as a primary residence or investment properties), vehicles, and long-term investments like retirement accounts (e.g., 401(k), IRA) or stocks and bonds. For businesses, non-current assets often include property, plant, and equipment (PPE) like buildings, machinery, and delivery vehicles. Intangible assets, such as patents, copyrights, and trademarks, also fall into this category, representing non-physical items of value that provide future economic benefits.

Locating Asset Information

Gathering information to value assets involves reviewing various documents and sources. For individuals, bank statements provide current balances for checking and savings accounts, and investment statements detail stocks, bonds, and mutual funds. Retirement account statements show the value of long-term investments. Real estate values can be estimated through online tools, comparable sales, or professional appraisals, while vehicle values can be found using online guides like Kelley Blue Book or NADA guides. Valuable personal property, such as jewelry, art, or collectibles, may require appraisals or a review of purchase receipts to determine current market value.

For small businesses, much of the asset information is consolidated on the balance sheet, a financial statement showing the company’s financial position. The balance sheet categorizes assets into current and non-current, providing values for items like cash, accounts receivable, inventory, and fixed assets. Beyond the balance sheet, specific documents like fixed asset registers or inventory count sheets can offer detailed breakdowns of individual assets. Businesses might also use asset management software to track and value their equipment, inventory, and other assets. Public records, such as property deeds, vehicle registrations, and corporate filings, can also provide information on owned assets.

Calculating Your Total Assets

Calculating your total assets is a straightforward process once all individual asset values have been identified and gathered. The fundamental approach involves summing the values of all current and non-current assets. This simple summation provides a comprehensive figure representing everything you own that holds economic value.

To perform this calculation, you would add the total value of all your current assets, such as cash, bank account balances, and short-term investments. Then, you would add the total value of all your non-current assets, which include real estate, vehicles, long-term investments, and business equipment. For instance, if an individual has $10,000 in cash, $5,000 in short-term investments, a home valued at $300,000, and a vehicle valued at $20,000, their total assets would be $10,000 + $5,000 + $300,000 + $20,000, totaling $335,000. A small business might sum cash, accounts receivable, inventory, buildings, and machinery to arrive at its total asset figure. Accuracy in valuing each asset and ensuring all owned items are included is important for a precise calculation.