Accura Marketing

Asset Protection

New entrepreneurs start their business without a lot of thought about a business plan. Without that business plan you also don't usually give much thought about asset protection.

This portfolio of assets that every business acquires or starts out with as you create your ‘home business opportunity’ should establish and name these mysterious assets. In todays technological society it is even more important to properly establish this ‘home business’ to claim your freedom under the State Statutes. Importantly, also, for your family as this may be their legacy. This ‘home business’ is also your ‘family business’ and your family should know all that is going on through communicating this to them.

Many small business owners wonder if an accounting system is necessary. Most find the language of credits and debits confusing, but an efficient accounting system contributes communication of profitability to the managers of an enterprise. Just as statistics of a website gives you the return on investment, an efficient accounting system does the same for you on an overall picture of multiple streams of income. Your streams of income are all processes of intellectual organizations combined to earn you money. And you want to account for these large sums going into your bank account without our government entities thinking those sums could be tied to terrorist activities, and everything you own seized.

An accounting system is for communicating the financial health of an organization. And therefore a simple system is needed to help you run your business. The general ledger shows the transactions in four different categories. These account categories are assets, liabilities, income and expenses.

Intangible Asset Accounting Issues

The Organization for Economic Cooperation and Development (OECD) and the International Accounting Standards Committee (IASC) have worked toward a number of tentative conclusions. Following is the suggested course of action since most important investments are no longer tangible. Since the old rules on intangible and intellectual property don’t work, this is suggested and sponsored by OECD:

To communicate a better financial health on and in a prize, intangibles must be disclosed so that interested parties, investors, financial analysts and beneficiaries can determine values.
Entities need to disclose information about intangible expenditures, irrespective of whether such expenditures are recognized as assets on the balance sheet.
Two main elements of identity:
- Technological investment/ expenditures ( Research and development hardware and software, patents, copyrights, licenses and design engineering) and
- Enabling investments/ expenditures (employee training, information systems, organizational structuring, marketing, and trademark/ brands).
Recognition is a key problem that requires judgment which has been a part of the standard accounting system and should not be a barrier.

The capacity to generate and maintain intangible assets is central to the success of many modern companies, yet on the average 40% of the value of a company is not shown in any way in its balance sheet because it’s difficult to reflect in financial statements.

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Asset Protection