Assets

What are assets?

Assets are everything your business owns that has value. This includes cash in your bank account, equipment you use for work, vehicles, inventory, money clients owe you, and even intangible things like patents or trademarks. Assets represent the resources available to run and grow your business.

On a balance sheet, assets show what your business has to work with.

Types of business assets

Assets are typically categorized as:

• Current assets — Cash and items easily converted to cash within a year: bank accounts, accounts receivable, inventory
• Fixed assets — Long-term items used in operations: equipment, vehicles, buildings, land
• Intangible assets — Non-physical items with value: patents, trademarks, goodwill

Why assets matter

Assets minus liabilities equals equity—the true value of your ownership stake. Tracking assets helps you understand your business's net worth, secure financing (assets can serve as collateral), and make decisions about investments and growth.