Everyone should know their net worth. Having this information handy will help when unexpected expenses arise or if you decide to invest your money. A tax accountant can come in handy for determining all of your financial assets and how to grow them. Here’s what you should know.

What Is a Financial Asset?

Anything that you own that has financial value is an asset. Common examples are cash, checking and savings accounts, homes, real estate, and cars. You might also own antiques, collectibles, art, jewelry, coins, and many other items that have some worth. 

A life insurance policy is also a financial asset. Many tax accountants would actually recommend that you have one of these in place to protect your family from any remaining debt and taxes they might inherit after your passing. 

To determine your net worth, add up the current value of all your assets and subtract any liabilities—the debts you owe, like a mortgage or credit card balances. As financial assets are mostly liquid—their value increases or decreases based on the market—it’s important to calculate your net worth regularly. 

What Are Asset Accounts?

An asset account is a type of account used to sort and store the debit and credit amounts from an individual’s available resources. They’re held by a bank or investment company, and you can deposit or withdraw funds based on the account’s rules. 

A brokerage account, for instance, typically consists of stocks, bonds, and mutual funds. You can buy and trade these commodities to improve your investment. Usually, a financial professional like a tax accountant is needed to advise on how best to move your funds around for future growth. 

Simpler forms of an asset account are savings, checking, and money market accounts. You deposit money at a bank or another secure facility for storage, and you can then access it either physically, with the use of a debit card, or online. Certain accounts may also offer interest on the deposited money.

Other examples of asset accounts include 401(k) plans, IRAs, pension plans, 529 college savings plans, and certificate of deposits (COD). 

When you need help keeping track of your financial assets, turn to the professional tax accountants at Sharrard, McGee & Co., PA. For over 40 years, they’ve provided accounting and financial services to individuals and businesses in the Triad area in North Carolina. To speak with one of their tax advisors today, call their Greensboro office at (336) 272-9777 or their High Point office at (336) 884-0410. Visit their website to learn more about their accounting services.