The Balance Sheet has a formula to determine how much equity is in the business Assets – Liabilities = Equity.   This is similar to your personal net worth. You will need to look at your balance sheet no less than annually.

Here is a list of assets, liabilities and equity normally found on a balance sheet.

If you have authorized a business representative such as an accountant, bookkeeper or tax professional to act on your behalf with the CRA, there are some important things you have to keep in mind.