Assets

Assets can be categorised into tangible and intangible assets. Things we can touch and things we cannot.

They represent a value to the business, something that could be available to help meet debts & commitments if needed.

Tangible assets are things we can touch and things that can easily be turned into cash. Below are a few examples.

• Property
• Cash on hand
• Tools, Equipment & Materials
• Inventory
• Land

Intangible assets are things we cannot touch. They cannot necessarily be transferred into available funds, but represent value to the business.

• Goodwill
• Accounts receivable
• Copyright
• Licences
• Patents

It is important to make note of what represents an asset to a business.

Having knowledge of the business assets is vital when exploring funding options or if choosing to value or sell a business.

If unsure, get advice. Make sure to get it right. Your business could be worth more than you realise!