6 Asset Protection Strategies of Small Business Accountants
Assets are tangible items that a business uses that can have a monetary value. Many small businesses may have a variety of assets under their belt, and these can be anything from a property for a business space to the tools used for the services that you're providing. The kind of small business you have may depend on the types of assets you have.
And while many small businesses may not have a lot of assets, it's important to get asset protection strategies for whatever your small business has right now. It is important to know the best options for ensuring your assets are protected, but small businesses should try getting accountants.
Small business accountants can offer up several asset protection strategies such as:
1) Clarify Your Assets
One of the first things that your accountants will probably do is to clarify your assets. This means that they will review the various assets that you have, whether you have inventory or other property, and they will help to figure out the value of these assets. They can also help you to find out which of these assets may be subject to risks.
2) Keep Track Via Bookkeeping
Allow your small business accountants to keep track of your assets via bookkeeping, figuring out how much you spent on these assets. This is quite useful when you want to write off any of these costs as an expense that you can deduct from your taxes. They can also help you to figure out which assets are fully owned by the business for the depreciation write-off.
3) Establish a Trust
Trust is one of the most important forms of asset protection that your small business can get. Through the use of trust, you can protect your assets and keep them safe. Allow your accountant to guide you through the process and pick the best trust arrangement for the assets that you have to manage and secure.
4) Restructure the Company
Some small businesses may need to restructure the company to separate the business and personal assets of the owners. Your accountant can help you get this done in the right way and can also figure out the right steps to protect these assets during the company structure's shift.
5) Make a Legal Will
Having a legal will in place can be a good way to protect these assets and ensure that they stay within the business. If you pass away, you may not want your kids or your partners to get all your small business assets. Write out a will that will let you control who gets what so that your assets are safe.
6) Seek Insurance Protection
Small businesses may want to consider insurance protection. They can always purchase coverage to help protect these assets from risks that may arise. Some small companies may consider adding more assets to the insurance to get more protection but consult your accountant before such an adjustment.
Asset protection strategies are essential for small businesses. Whether it involves clarifying your assets or creating legal documents to protect your business from lawsuits, small businesses and their accountants should try to get asset protection strategies in place.
Looking for a small business accountant on the Gold Coast? New Wave Accounting offers end-to-end accounting and bookkeeping services that help scale & grow businesses. Get in touch with us today!