Sam 47 Questions 49 Answers 2 Best Answers 297 Points View Profile 3 Sam Asked: May 6, 2020In: Money Why is it a good idea to know your net worth? 3 why is it a good idea to know your net worth? explain how you can use an income statement, personal balance sheet, and net worth statement with regard to your personal finances? Share Facebook 3 Answers Voted Oldest Recent Agnes United States (US) 0 Questions 15 Answers 0 Best Answers 148 Points View Profile Agnes Added an answer on May 6, 2020 at 2:27 pm If you know your net worth, then you can maintain your expenses and investments in a good way. Yes, whenever you file your income tax return, you get to know how much money you have spent this year and how much money you have earned. If you do not know how much your net worth is, then you cannot guess how much money I should spend. There are many online software where you can keep track of your net worth. Gone are the days when you needed an accountant. Yes, if your business is still big then you will need a CA. But if your business is not very big, then you can manage all this yourself. List of some online software to mage balance sheet: Tally.ERP 9 Ezy Rokad Profitbooks Busy Accounting Software Marg Accounting Software Saral Accounting Software Zoho Books MProfit Quickbooks Wave Accounting Zoho Expense FreshBooks NetSuite ERP FreeAgent Vyapar HDPOS Smart Accounts & Billing Xero Giddh Accounting Software Reach Accountant Book Keeper SlickAccount Reeleezee for Accounting myBooks Quickbooks is a very good and cheap online software that you can use easily. I have been using Quickbooks for the last 3 years and its customer support is quite good. 6 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Isabella Los Angeles, 1 Question 8 Answers 0 Best Answers 77 Points View Profile Isabella Added an answer on May 6, 2020 at 2:38 pm If you want to know your net worth, then first you have to know how much money you have got for the whole year. After that how much were spent in your whole year. Depreciation of everything you used such as laptop, computer, furniture etc. By calculating all these, you have whatever money you have left. That is your net worth. Like suppose your one year income is $10k. And 5K is your expenses in it. And there is a 01k depreciation. So your net worth for that year will be 4k. 3 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Martin Australia 13 Questions 54 Answers 2 Best Answers 410 Points View Profile Martin Added an answer on May 6, 2020 at 2:31 pm Everyone should know their net worth. If you do not know your net worth, then you can hire a CA for this. For this you will have to pay some fees to him, but you will get complete information about your net worth. Whenever you have to apply for a loan, it is important to know the net worth. Many times we have to take a big loan if we know our net worth, then we get a loan accordingly. 3 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.