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When it comes to assets, the needs of businesses can vary. This can depend on size, nature of the business, and other factors. However, all businesses need some assets in order to operate, so what are the important assets for your business? Making sure you have the right assets will help to make business operations far more successful.
When you’re trying to increase custom and boost your online and offline marketing, using everything from printed banners to social media can be a big help. When you have financial assets you can start building up the other tangible assets that your business needs to increase its value and success.
Although most businesses have an accountant to sort their assets out for them, it is very important that business owners understand which categories their company property falls under:
Common financial assets
One of the types of assets your business will need is financial assets. As mentioned earlier, you can increase your financial assets and cash flow through gaining more custom with advertising. Using marketing methods such as printed banners and online marketing can help to bring in more customers, which means more money for your business.
Some of the common financial assets your business may need include:
• Cheques that not yet been deposited
• Petty cash
• Short-term investments
• Raw materials
• Supplies for packaging and manufacturing
Basically, all of these are assets that either come in the form of money or can be quickly converted into money. In addition, common assets are ones that you expect to use with twelve months.
When you have valuable items that you have purchased to operate your business, these are known as fixed assets. These are items that you have purchased outright or under a Hire Purchase agreement. The value of these assets has to come to a specified minimum. It is also an asset that will be used for over twelve months. Some examples of these assets include:
• Equipment such as computers
• Hardware such as printers
• Software that you use with computers
• Office equipment and furniture
• Any tools or machinery that is used
• Vehicles that are part of business operations
• Art that is used at the place of business
• Buildings and business premises
• Long-term investments
Most businesses will have or need some form of fixed assets, even if it is just the basics such as office furniture and equipment.
Finally, you also need to consider intangible assets, which your business may need at some point. These assets do not physically exist but they do add value to your business. Some examples are:
• Trademarks, patents, and copyrights
• Designs and formulas
• Any intellectual property
• Customer lists that have been purchased
• The good name and reputation of the business
Not all businesses will have intangible assets, as it really does depend largely on the nature of your business.
So, which assets does your business need?
The assets that any business needs will be dependent on a number of factors. This includes the size and nature of your business. For instance, a car garage would need very different fixed assets compared to an accountancy firm. You need to look at your business operations and what you need to operate the company in order to determine the fixed assets you need.
When it comes to intangible assets, this is also dependent on the nature of your business. For instance, some businesses will have no dealings with things such as copyright and patents while others, such as design and tech companies, will. All businesses need common financial assets to some degree, whether it is to purchase stock and supplies, pay employees, or to run the business.
If you have an accountant at your business or you use an accountancy service, he or she will be able to determine which of your assets fall into which category. An accountant will also be able to offer advice in relation to tax on the assets that you have or are thinking of investing in. This is also something that may play a part in the assets that your business needs or decides to invest in when it comes to fixed assets.