List all income types and amounts for the year at the top of a spreadsheet or on a piece of paper. Write or type a description of the income on the left side and the amount earned for that income type directly to the right of the description. Total all of the income and create a line at the bottom of the income called "Gross Income." Enter the total of all income next to the Gross Income line item.

List all expenses for the year below the income section. Write or type a description of the expense on the left side of the page and the amount spent on that expense directly to the right of the description. Total all of the expenses and create a line at the bottom of the expense section called "Total Expenses." Enter the total of all the expenses next to the Total Expenses item.

Add a line at the bottom of the page called "Net Income." Subtract total expenses from gross income and enter that amount next to Net Income.

List all the assets for the business. Assets include any business property of value including money in checking and savings accounts, equipment and office furniture. Total all the assets and create a line at the bottom of the asset section called "Total Assets." Enter the total of all the assets next to the Total Assets item.

List all liabilities for the business. Liabilities include items such as loans due for mortgages, business equipment, furniture or operating capital, money due to vendors and rent or taxes due. Total all the liabilities and create a line at the bottom of the liability section called "Total Liabilities." Enter the total of all the liabilities next to the Total Liabilities item.

Add a line at the bottom of the page called "Net Worth." Subtract the total liabilities from the total assets and enter that total next to the Net Worth item.