Many business owners don’t recognize that physical assets make up a sizable portion of your business. Due to their nature, physical assets are bought during the inception process and thought about little off from that point on. In the first place, most businesses purchase more than they need. While using those assets as the company grows in size is a healthy proposition, not many business owners execute the plan as they should. So, if you have been worrying about how best to utilize your business assets, here are a few tips to get you started:
Identify your assets: The first step toward managing your assets is to take an inventory of what you have. Not down everything you have, no matter how small. Remember, assets don’t just mean the computers and machinery you use in your day-to-day operations. It is also the stock of keyboards and speakers you have lying around in the back but never got around to using it. Taking an inventory of your assets is also a great way to discover any ghost or zombie assets you have lying around.
Assign a value to them: Once you have identified your assets, it is important to put a value on them. This will help you in the future when you have to make decisions about selling, leasing, or junking them. You can use the replacement value method, replacing the asset with a new one of the same make and model. Or, you can use the depreciated value method, which factors in wear and tear. Regardless of the value you assign to the assets; it is important to be consistent.
Record business assets: This step is important for two reasons. Firstly, it will help you keep track of your assets and their value over time. Secondly, it will come in handy if you ever need to file an insurance claim or police report. Make sure to include as much detail as possible, such as the asset’s make, model, and serial number.
Create a depreciation schedule: A depreciation schedule will help you understand the value of your assets over time. This is important because it will help you decide when to sell or replace them. Depreciation is affected by several factors, including the age of the asset, its expected lifespan, and how often it is used. You can create a depreciation schedule yourself or get help from an accountant.
Insure them: Once you have valued your assets, it is important to insure them. This will protect you in the event of theft, damage, or loss. Make sure to shop around for the best insurance policy, and don’t forget to factor in the value of your assets when deciding on the coverage amount.
Come up with a plan: After valuing your assets, it is time to come up with a plan for their utilization. This includes figuring out how often each asset will be used and by whom. For example, if you have ten laptops that are only being used by two people, it doesn’t make sense to keep them around. On the other hand, if you have an asset critical to your business operations, you will want to ensure it is well-maintained and always in good working condition.
Understand your assets and taxes: Last but not least, you need to understand the tax implications of your assets. This includes knowing which assets are subject to capital gains tax and how to calculate depreciation. These are just a few things to keep in mind when managing your business assets. By following these tips, you can be sure that your assets are being put to good use and are well-protected.
Sell assets the right way: When it comes to selling your assets, you need to do it the right way. This includes finding a buyer willing to pay a fair price, negotiating the sale, and getting the best possible deal. You also need to ensure that all the paperwork is in order and that you comply with any laws or regulations.
Physical assets are not the only thing business owners have to worry about; intangible assets are just as important. Intangible assets are items such as intellectual property, copyrights, and trademarks. These items can be very valuable to a company but can also be difficult to protect. Here are a few tips for protecting your intangible assets:
Register your copyrights and trademarks: This is the first step in protecting your intellectual property. By registering your copyrights and trademarks, you will have a record of ownership that can be used in court if necessary.
Keep good records: Good records are essential for proving ownership of intangible assets. Make sure to keep track of when and how you created each asset and any changes that have been made to it over time.
Educate your employees: Your employees are one of your biggest assets when it comes to intangible assets. Make sure they know what can and can’t be shared with others and the importance of keeping confidential information confidential.
As a business owner, it is important to understand the value of your assets and how to best protect them. By following the tips in this article, you can be sure that your assets are well-protected and being put to good use. Intangible assets are just as important as physical assets and should be given due attention. Registering copyrights and trademarks is one way to protect your intellectual property while keeping good records can help you prove ownership of intangible assets. Educating your employees about confidentiality and what can and cannot be shared is also key in protecting your intangible assets.