Assets - What You Own

Does the word "equation" give you hives? Don't worry! I've got you.

Keeping track of your books stems from the Accounting Equation (assets = liabilities + equity). While you don't need a complete understanding, it is essential to have a basic understanding of this equation. Then, you can understand your financial reports and make solid business decisions. So, let's look at assets this week. We'll look at liabilities and equity in the upcoming weeks.

Assets are anything the company owns. You can have current assets such as cash, inventory, or accounts receivable. These are things you own that can quickly be turned into cash.

You also have non-current assets like investments, property, or equipment you own. These items will take longer to make liquid (turn into cash).

Intangible assets are also a possibility. This includes things such as intellectual property, trademarks, or patents. These are important and add value to your business.