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Assets

Assets are the things a business owns or is owed that have value, from cash and equipment to money owed by customers. This guide covers current and fixed assets.

Published July 2026 · Updated July 2026

Key takeaways

  • Assets are resources the business owns or controls.
  • Current assets turn to cash within a year (cash, stock, debtors).
  • Fixed assets are long-term (equipment, vehicles, property).
  • Assets sit on one side of the balance sheet.

What are assets?

Assets are the valuable things a business owns or is owed: cash in the bank, stock, equipment, vehicles, property, and money customers owe you. They're one side of the accounting equation (assets = liabilities + equity).

Current vs fixed assets

Current assets are expected to become cash within a year, cash itself, stock, and trade debtors. Fixed (non-current) assets are longer-term, like machinery, vehicles and premises. The split matters for judging short-term financial health.

Worked example

Current: cash £20,000 + stock £16,000 + owed by customers £24,000
Fixed: equipment £15,000
= Total assets £75,000

Frequently asked questions

Is money owed to me an asset?

Yes, amounts customers owe you (trade receivables or debtors) are a current asset until they pay.

Are intangible things assets?

They can be, intangible assets include things like goodwill, trademarks and software, if they meet the recognition rules.

Learn more

Source: Investopedia ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.

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