Business assets can help improve a business’s value and generate revenue. If you own a business or are a business law attorney, it is critical to understand the different types of assets and how they can help keep companies financially secure.
Business assets can be either intellectual, tangible, or intangible property. Business health and success depend on having a healthy balance of all three.
Everything You Need to Know About Business Assets
Business assets help sustain growth and production and can include anything from property to materials to cash.
An asset is anything that provides a business with economic value. Companies own these assets. They provide businesses with a monetary benefit, whether in the present or future. Learn more about the different types of assets below.
Tangible Business Assets
Tangible assets are assets that are not consumed while doing business. These assets are crucial to a business’s operations. They can decrease over time, while other assets may depreciate over time. Examples of tangible assets include:
- Vehicles
- Machinery
- Land
- Buildings
- Equipment
- Long-term investments
- Company or office furniture
Intangible Business Assets
Intangible assets are assets that a business cannot move. They cannot be physically touched because they hold no physical form. Intangible assets include copyright, a trademark, a patent, a company’s reputation, and more. These assets provide businesses with a substantial value.
Businesses do not list Intangible assets on their balance sheet. Although not liquid assets, tangible assets can significantly increase a business’s value and credibility, resulting in a higher valuation. Intangible assets can make a company very valuable, especially if it does not have many tangible assets.
Some examples of intangible assets include:
- Copyright
- Brand
- Logo
- Patents
- Trademarks
- Reputation
- Designs
- Franchises
Intellectual Property Assets
Intellectual property assets are intangible assets. Intellectual property makes businesses very profitable and can be one of their primary sources of value. It is not included on balance sheets.
Examples of intellectual property assets include copyright, patents, logos, inventions, trademarks, and more.
Copyright laws protect businesses from possible copyright infringement.
Infringing on intellectual property rights comes with consequences, including a civil suit and fines. Companies require an experienced business law attorney to protect them if another company infringes on their copyright.
Current Assets
Current assets are assets that a business currently has. They are extremely helpful if a company needs financial support with very short notice. Businesses can easily transfer these assets to cash.
Examples of current assets include:
- Money owed from customers
- Bank drafts
- Cash
- Products or goods
- Short-term investments
- Stock inventory
The Importance of Business Assets
Assets can financially support a business and significantly improve its revenue, reputation, and overall success. A thorough understanding of your assets can give you a better picture of your company’s financial value.
Whether you own a startup, small business, or any other business, a business law attorney can protect your intellectual property or other assets.
It is critical to fully understand your assets to know if your company is in a good financial situation. A business law lawyer can provide legal advice if you decide to sell or purchase an asset. They can provide you with vital information about how buying or selling an asset may affect your business and also help you draft asset purchase agreements.
Hire a Business Law Attorney Today to Help You Understand Your Business Assets
It is critical to understand the role that assets play in determining a company’s value. A business law lawyer can help you keep track of all your assets to ensure your business is growing in the right direction. They can also protect you from potential financial ruin.
Your decisions today could impact you for years to come, with good or bad results. Hiring a business law attorney can help ensure you make the right decision while protecting you from disastrous errors.
Need a business law lawyer for your family business? Call 303-780-7333 or schedule an appointment for a free consultation.
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