ACCOUNTING 101: Assets Ain’t Just for Flexin’ — Balance Sheet Needs More Attention
- Jorge Ocasio
- Jul 15
- 3 min read
Let’s talk about business assets, shall we? Not the flashy ones you post on social media—I'm not talking about your new Tesla, matching company hoodies, or Karen from accounting’s color-coded spreadsheets (I can't with you, Karen). I’m talking about the stuff that actually shows up on your balance sheet and either helps your business thrive—or drags it like a pair of dollar store flip-flops in a marathon.
“I’m talking about the stuff that actually shows up on your balance sheet and either helps your business thrive—or drags it like a pair of dollar store flip-flops in a marathon.”
Today, we’re diving into current assets vs. non-current assets. Don’t worry, I’ll keep it light, give you examples, and help you see why this matters whether you're running a bakery, a barbershop, or a billion-dollar biotech biz.
First Things First: What Is an Asset?
An asset is anything your business owns that has value and can help you make money. Think of it like your business's toolbox—whether it's cash, equipment, or that random stash of coffee mugs you hand out at trade shows.
Current Assets: The Quick and the Liquid
Current assets are the stuff your business expects to use, sell, or turn into cash within a year. Basically, the sprinters of your financial team.
Examples of current assets:
Cash (obviously, the Rihanna of your balance sheet, bi#%h better have my cash.)
Accounts Receivable (aka: money your customers swore they'd pay you next Tuesday)
Inventory (products waiting to be sold)
Prepaid Expenses (like that 6-month software subscription you already paid for)
Why Current Assets Matter:
They show how much liquidity (aka: moolah-ready-to-move) your business has to handle daily operations.
The more current assets you have, the better chance you have of paying bills, paying staff, and not crying in a corner when rent’s due.
But the flip side…
Too much inventory = money sitting around doing nothing.
Accounts receivable? Cool—until your customers ghost you longer than your last situationship.
Non-Current Assets: The Long-Term Ride-or-Dies
Non-current assets are things your business keeps around for more than a year. These are the slow burners—the long-haul investments.
Examples of non-current assets:
Property, Plant, and Equipment (PP&E) (like office buildings, machinery, or that $10K espresso machine you swear helps productivity)
Intangible Assets (trademarks, patents, goodwill)
Long-term Investments (like putting your money into another company or a nice juicy bond)
Why Non-Current Assets Matter:
They give your business lasting value and can help build wealth over time.
They impress lenders, investors, and maybe even your in-laws.
But beware…
They’re harder to turn into cash in a crisis (try selling a factory overnight, good luck).
They depreciate—meaning they lose value over time (like your iPhone the second a new one drops).
So Why Does All This Matter?
Because if you don’t know what’s on your balance sheet, you’re flying your business blind. That’s like trying to diet without looking at the scale or—worse—guessing your bank account balance before payday. You might be feelin’ rich, but you could be a day away from NSF fees and tears.
Knowing your current assets shows how agile and ready you are to pounce on opportunities or pay off debts fast. Knowing your non-current assets helps you plan long-term growth, secure funding, and build real value.
Bottom Line: Balance Is the Name of the Game
A good business doesn’t just stockpile assets—it knows what kind it has, how to use them, and when to shift gears. Like a well-balanced diet (with room for a little chocolate), your balance sheet needs the right mix of current and non-current assets.
Too much of one and not enough of the other? That’s like having a bunch of expired coupons—useless until you know how to use ‘em right.
To wrap this up and get to the point, take a peek at your balance sheet. Give your assets a little love. In the world of business, details matter, the basics and your balance sheet will always need more attention. What you own and how you manage it is often what separates the struggling from the scaling.
Now go forth—and make those assets werk and as always, sending positive vibes your way.
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