financial advisor near me

Right now all you need to know is that it’s not an SI inventory what did you say if you said asset you got it right the next one might surprise you employees are not assets let me repeat they are not assets businesses don’t own employees they owned buildings they own land they own inventory but they don’t own employees so it’s not considered a an asset now here’s another set of items for you stop this presentation for a few minutes and write down which you think are assets once you have done that we can restart okay are you done let’s start accounts receivable is an asset it represents future money to be obtained from a customer.

Machinery is an asset they generate revenue for our company prepaid expenses this might surprise you our assets they are money that is prepaid before any service is received so it’s treated as an asset since an external party owes the company a service next one expenses are not assets we’ll discuss that later Furniture is an asset the next one might surprise you revenue is not an asset why is that because the definition of an asset if you remember is something that brings future benefits key word future revenue relates to current benefits.

Watch out about the hidden costs of running a business.