Asset analysis in accounting is an integral part of the process of preparing a company's balance sheet. One of the four financial statements in accounting, the balance sheet shows a snapshot of the financial state of the company expressed by the expanded accounting equation: assets equal liabilities plus owners' equity plus (revenue minus expenses). Assets are classified as either as current or long-term.
Current assets are those that are either currently liquid or could be converted to cash in less than a year. Examples include cash, inventory, receivables (money due from borrowers, clients or customers) and short-term stock and bond investments. Examples of long-term assets include the structures, land, equipment, vehicles, furnishings and fixtures belonging to the company. In asset accounting, real estate being held for speculation, trademarks and patents are also counted in the fixed asset analysis as long-term assets. If your company is in need of an accounting asset analysis, use the following as a guide.
1. Have a certified public accountant (CPA) manage your business assets in accounting and prepare your financial statements.
2. Learn asset analysis in accounting basics by getting training in accounting.
3. Depreciate your company assets using one of the available software tools.
Hire a CPA for your accounting, asset management and tax preparation needs
Maintaining records and performing all the accounting tasks involved in running a business can be daunting. A CPA will bring knowledge and experience to the table in providing the accounting services you need, bookkeeping, asset analysis, preparation of financial statements, tax planning and preparation services and so forth.
Acquire training on analyzing accounting assets
The outlook for the accounting career field is promising. The U.S. Bureau of Labor Statistics predicts a 22% increase in accounting jobs by 2014. It is likely that an increase in the number of businesses, changing regulations and financial laws and a heightened level of scrutiny of business finances will bolster growth in the accounting job market.
Assets. Penn Foster College offers AS and BS degree training in accounting online.
Purchase fixed asset depreciation software to calculate the loss of fixed asset value over time
One important aspect of accounting for a capital asset is to account for the loss in value over time, known as depreciation. Whether you choose straight line, sinking fund, double declining balance (DDB), sum of years digits (SOYD), accelerated cost recovery system (ACRS) or some other depreciation method, depreciating a company's assets can make a big difference each year at tax time. This can be done easily with one of the asset depreciation software programs that are available.
- Unlike contingent losses and liabilities, contingent assets (i.e. possible future assets that depend on a contingent gain) are not to be recorded in accounts, even if the gain is likely and estimable. An example might be if there is a pending lawsuit that your company is likely to win and be awarded cash.
