Which positions belong to the assets in a balance sheet?
April 20, 2022 | 40,00 EUR | answered by Laura Hohenwarter
Dear Tax Advisor,
My name is Oliver Koch and I have a question regarding the items that belong to the assets in a balance sheet. I recently founded a company and now face the challenge of preparing a balance sheet. Unfortunately, I have no experience with this so far and am unsure which assets and receivables need to be listed in the assets.
Currently, I have some liquid funds in the business account, various machines and equipment purchased for production, and a warehouse with raw materials and finished goods. In addition, I have outstanding receivables from customers that have not been paid yet. I am wondering if all these items belong to the assets and if there are any other assets that I need to consider.
My concern is that I may prepare the balance sheet incorrectly and this could result in tax disadvantages for me. Therefore, it would be very helpful for me if you could explain exactly which items belong to the assets and how to correctly report them in the balance sheet. Are there specific subdivisions or classification rules that I need to follow?
I would greatly appreciate it if you could help me and provide possible solutions. Thank you in advance for your assistance.
Sincerely,
Oliver Koch
Dear Mr. Koch,
Thank you for your inquiry regarding the assets that belong to the liabilities in a balance sheet. As a tax advisor with extensive experience in the field of accounting, I am happy to assist you and explain in detail which assets and receivables need to be included in the liabilities.
First of all, the assets in a balance sheet include all assets and receivables that belong to the company and provide economic benefit. Specifically, this means that cash on the business account, machinery and equipment for production, inventory of raw materials and finished goods, as well as open receivables from customers generally belong to the assets.
The cash on the business account is the simplest item, as it consists of cash or credits that are directly available to the company. The machinery and equipment for production, as well as the inventory of raw materials and finished goods, belong to the fixed assets and are shown in the balance sheet under fixed assets. Open receivables from customers, on the other hand, belong to current assets and are listed under receivables from sales and services.
There are other assets that may belong to the assets, depending on the type of company and business activity. These include, for example, investments in other companies, securities and mutual funds, intangible assets such as patents or trademarks, as well as long-term receivables from other companies.
In terms of the structure of assets in the balance sheet, there are certain subdivisions that you should consider. Typically, assets are classified according to their liquidity and maturity. This means that fixed assets, which are used in the long term, are separated from current assets, which can be realized in the short term.
It is important that you correctly consider and allocate all assets and receivables when preparing your balance sheet to avoid any tax disadvantages. If you are unsure, I strongly recommend seeking assistance from a tax advisor or accountant to ensure that your balance sheet is accurate and complete.
I hope that this information has been helpful to you and I am available for any further questions. Thank you for your trust and all the best for your company.
Sincerely,
Laura Hohenwarter
