Balance sheet

Abstract

Liabilities take value from your business in the future, eg tax to pay or loan to repay. If you borrow money to spend on an asset, the same value will show up in the assets section. If goodwill is your main intangible asset, find ways to turn it into itemised assets, eg supply agreements. There are two ways to buy assets: 1. With equity, eg money you put in to the business, or money the business makes. Equity will reduce as you increase your assets. 2. With liabilities, eg a bank loan. Your liabilities will go up as you buy more assets.