# How to Calculate Your Total Available Assets

Camino Financial26 Feb 2024

## How Do You Calculate Your Total Available Assets?

### Why Calculating Your Total Available Assets is Important

Why is calculating your total available assets important? Why bother putting in the effort? Aside from the importance of understanding your business’ financial status, there are a number of situations in which knowing your total available assets may be necessary. For example, you may need to know the total value of your assets if you:

## What Are Assets? What Are Total Available Assets?

### What Are the Different Types of Assets?

Assets can fall into a variety of categories depending on your preferred method of keeping track of them. Common assets categories include:
• Cash: This includes petty cash as well as all the cash in your business’ bank account.
• Accounts Receivable: These are your unpaid bills, which can be sold for financing.
• Liquid Assets: Liquid assets are anything that can be sold quickly for cash, like stocks.
• Fixed Assets: Fixed assets are assets that take longer to sell for cash, like real estate and office equipment.
• Intangible Assets: These are nonphysical assets, like stocks, bonds, royalties, etc.
• Tangible Assets: Tangible assets are all of your physical assets, like supplies, equipment, vehicles, and similar items.
Classifying assets based on shared qualities will make it easy to keep track of them. Basically, anything that can be converted to cash should be included in your asset inventory.

## How Do You Record Assets on a Balance Sheet?

For the most part, you’ll want to divide your assets into two separate categories: current and long-term assets. Current assets are assets that may be used or sold within a year. These are usually your liquid assets. For example, cash and accounts receivable would typically count as current assets. Everything else counts as a long-term asset. If you own your office building, that’s a long-term asset. Vehicles and equipment would also be included in this category. Once you divide your assets into current and long-term assets, you should record your assets on a balance sheet based on liquidity, or how easy it would be to sell the assets. For current assets, cash is typically at the top of the balance sheet, followed by accounts receivable, short-term investments, inventory, etc. For long-term assets, your office building might be at the top of the balance sheet, followed by other tangible assets, then intangible or fixed assets.

## How to Keep Your Assets Safe

Many small business owners that are in need of extra capital end up getting secured loans. These types of loans require you to put up collateral (the collateral will take the form of your business assets). The problem is, that if at any point you can't pay off the loan, the bank or financial institution can seize your assets to sell them and recoup their losses.