Assets are invaluable in all walks of life.  Assets are especially essential parts of the business equation. Although the concept of an asset is broad, it refers to anything that can be controlled and used to either store or produce more value. These include the physical and intangible assets that your company owns.  Tangible assets are physical items such as machines, tools, real estate, vehicles, and more. In addition, intangible assets include intellectual property (IP), databases, operational data, software license agreements, and organizational capital. These assets have a finite value.  The idea of spending time and money on protecting assets that don't generate any revenue may seem like an inefficient use of resources. But as soon as a business grows and scales, the importance of asset management increases proportionally, and ignoring your company's assets can turn into a financial nightmare.  When properly managed, assets can contribute to your company's growth, financial success, and encourage sustainability. However, poor management practices can hurt profits, hinder growth opportunities, and even wipe them out. Asset management allows you to use your assets properly to continue to grow and grow your business. It will help you get your business on track, manage risk and more.

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1. Identify Your Assets

Knowing what assets you have, as well as their value, is key. Make a list of all:

Office furniture

Computers

Equipment

Special technology

Company vehicles

Fixtures

Buildings you own

Inventory

2. Assign Value to Them

Once you have a list of your assets, determine their value. This isn’t what you initially paid for them because assets depreciate. To determine the market value of these physical assets, look for similar products (about the same age) for sale in your area (eBay is a good place to start). This isn’t an exact science but will give you a ballpark figure of what they’re worth, which will be useful later if you want to take out financing.

3. Record Your Business Assets

Now that you’ve assigned value to your assets, list them on your balance sheet. Most accounting software will walk you through the process, or you can get help from a professional accountant.

Realize that your balance sheet is just a snapshot in time, as your assets may change (especially cash and inventory) and depreciate. You’ll need to plan to update your balance sheet as assets depreciate or change significantly.

Zezamii’s Dashboard accounts for the issues of asset management by placing every physical device and personal employee consolidated into one system allowing your management team to better understand their holdings tangible or intangible.  

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