There is a better resource of the surplus or idle assets can generate for your business that is cash.
Start reviewing your fixed assets register. Fixed assets register is a summary of all assets owned by your company. It should contain information such as the asset description, date of purchase, value of the assets and economic useful life of each asset.
It is also a good practice to review and update your company’s assets register regularly to identify surplus assets concurrently evaluate the assets value ensure its approximately close to market values. The company law requires assets accounted in the accounts are of market values.
Ways To Convert Business Assets Into Cash.
- Sell the surplus fixed assets such as land and buildings, plant and machinery, motor vehicles.
- Assets that could potentially be made surplus and then disposed of, for example by subcontracting out your manufacturing processes.
- Essential fixed assets that you need to continue to use, but which can be sold and leased back to provide cash.
- Hire out underutilized of plant and machinery capacity.
- Sub let vacant factory and rent out vacant office space.
- Disposed of separable and saleable investments such as shares, subsidiaries or any parts of the business like a branch.
- Sell idle equipment lying around in the factory or unused office furniture. The chances of the idle business assets being re-used is very small because people often forgotten about stuff stored in the warehouse or a storage room.
Cash is king and it is also the life blood of any business.
Concise Accountancy – solutions to find cash for business.