Assets are everything your business or household owns that has monetary value, or can be converted into cash.
For a business, an asset may create money for a business, or the business may benefit from holding or utilizing the item, depending on the circumstances.
There are two main types of assets, fixed and non-fixed:
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Fixed assets are those acquired for the long-term benefit of the business. Fixed assets are tangible assets that you own and use only to produce or sell goods and services to customers. Fixed assets are subject to depreciation. Examples of tangible assets include cash and cash equivalents, property and land, furniture, raw materials, and inventory. Intangible assets include items such as shares, copyrights, patents, and trademarks.
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Non-fixed assets are assets that can be converted into cash within a year, such as inventory or accounts receivable.
Why It Matters
Knowing what counts as an asset, and separating what you can turn into cash quickly (like cash or receivables), from what's tied up long-term (like equipment or property), helps you understand your real financial cushion, not just your bank balance.
Assets are connected to liabilities and make up your net worth. The difference between assets and liabilities is simple: assets are things that you own or have control over that are expected to make money in the future. Liabilities are owed to other people, such as unpaid bills, lease payments, mortgages, tax payments, loans, and if you own a business wages and benefits for employees.
How This Works in Quicken
Your assets contribute to the Net Worth shown on your Your Net Worth Dashboard. Your connected bank accounts contribute to your assets, so make sure you have all accounts connected. You can add and track your property and vehicles as assets, see Tracking Real Estate as an Asset and Tracking a Vehicle as an Asset .