What are assets?

Assets are the property of a business that have an economic value. This could be cash, investments, money owed, supplies, equipment, land or buildings. They must have a measurable value to appear on a balance sheet.

Assets are important as, together with liabilities, they are used to measure the financial health of the business. They are sometimes used in negotiating lending.

In Sage One you can post the opening balances for your assets so their value is reflected in the balance sheet. As your business grows, you will be able to record the purchase of new assets in Sage One and when your assets increase or decrease in value, you will also be able to record the appreciation or depreciation. Sage One Accounts Extra has the additional option that allows you to record the purchase of assets through hire purchase.