Assets

Assets are resources that the company has at its disposal and that have an economic value. This can include cash, bank deposits, trade receivables, inventory, property, equipment, patents, intangible assets and other economic resources.

Assets are owned or controlled by a company, and have an economic value and the potential to generate future benefits. Assets represent what the company owns and can use to support and run the business.

How are assets classified?

Assets can be classified into two main categories: current assets and non-current assets.

• Current assets: Cash, bank deposits, trade receivables, inventory and other resources expected to be converted into cash within one year or within a normal operating cycle.
• Non-current assets: Property, buildings, equipment, patents, intangible assets and other long-lived resources intended for use over a longer period.

What are they used for?

Assets matter to the company in several ways:

• Use in operations: Assets such as inventory, equipment and property are used in the company's day-to-day operations to produce goods and deliver services.
• Generating income: Assets such as trade receivables and investments can generate income through sales or interest income.
• Security for loans: Assets can be used as security in order to obtain financing or loans from creditors.
• Growth in value: Assets such as property or intangible assets may increase in value over time, and contribute to the company's economic growth.

Tips for managing your assets

1. Asset management: Put effective asset management processes in place to ensure accurate recording, maintenance and monitoring of assets.
2. Risk assessment: Assess and monitor the risks attached to assets, such as falls in value, obsolescence or technologically outdated equipment.
3. Optimising capital allocation: Evaluate and optimise the allocation of assets, so that they support the company's strategic goals and give the best possible return.

Managing and using assets effectively matters to the company's success and financial sustainability. It requires a clear understanding of the assets and their values, as well as strategies for making the best possible use of them.