We see it all the time – during discovery sessions, we find assets that are not posted on the books. Let’s review the top four we typically see missing.
Top 4 Missed Assets
Often, assets get overlooked and never make their way onto the books. There are four common asset areas where business owners struggle or omit information.
Many business owners link their business checking accounts to their bookkeeping software. This is a great practice and we highly recommend it. The problem comes when the business owners exclude business accounts from the bookkeeping software. Savings accounts are a common one. Another “account” that business owners often exclude is “CASH”.
Business owners with registers in a brick and mortar don’t omit this (usually), it is those with service/virtual businesses. The cash box (or drawer, or bag, or wallet) is a business account as well and needs to be tracked just as meticulously. If you start with $100 cash in the till and make $80 net cash sales – you should have $180 in the till until you take that money to the bank – which is entered as a transfer.
People dread this word, and it’s understandable. Who wants to sit around counting widgets, screws, towels, etc? This is one of those necessary evils that just simply must be done! Risk management, asset management, human resource management, and account management all require an accurate inventory count to be done each month! Outsource if you need to, assign it to the team one weekend evening a month and just get it done.
- Fixed Assets
If you used business funds to purchase five trucks or three computers or leasehold improvements – those are fixed assets! Did you use company funds to purchase land or buildings? Fixed assets. There are many different kinds of fixed assets in the business and these are complicated by depreciation.
- Other Assets
Patents, trademarks, and copyrights are also assets of the business. Many owners are not aware when these become the property of the business.
Assets are such an important part of your business – it’s what your business owns! Be sure you track it all!
If you are unsure or have questions, we are happy to provide a FREE Discovery session with our CEO. CLICK HERE to schedule yours today!
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