Managing Business Assets

Assets give your enterprise significant value, so it makes sense to monitor and manage them with care. This applies to both tangible and intangible assets. Managing them is both a function of monitoring operational and financial processes and practices.

The business owner is ultimately the one responsible for managing their business assets both current and non-current.
Current Assets are assets expected to be converted into cash within one year, such as:

• cash and cash equivalents, like readily available cash and short-term, highly liquid investments.

• accounts receivable, which is money owed to the company for credit sales.

• inventory, including raw materials, work-in-progress, and finished goods on hand.

• prepaid expenses, for example, rent or insurance paid in advance.

Non-Current Assets are assets where the conversion to cash is beyond one year, such as:

• property, plant, and equipment (PP&E).

• long-term Investments.

• intangible assets, namely patents, copyrights, trademarks, and goodwill.

When acquisitions and dispositions of assets occur, it is critical for the business owner to document and communicate the changes to your bookkeeper.

Unless the changes to these assets are documented and communicated to your bookkeeper in a timely manner they are lost.

Effective management and protection of assets is reliant upon internal controls, which capture these changes. To learn more about how customized processes and practices can help your business to comply with tax liability, and regulatory obligations, contact Books Done Right.