As we know, in accounting, a balance sheet is an important financial statement that provides a summary of a business’s assets and liabilities. Balance sheets allow companies to assess their financial position at a particular point in time and act as a supporting document for potential investors to consider.
The assets included on a balance sheet may be categorised into tangible or intangible items. Tangible assets may be fixed assets, such as machinery, IT, infrastructure, and land or current assets such as cash, cash equivalents and inventory. Intangible assets are also an important consideration in any business sale or liquidation as they sometimes comprise the majority of remaining value if the business no longer has inventory or property. Examples of intangible assets include logos, websites, trademarks, copyrights , websites nd patents.
Once the assets and liabilities have been assessed, businesses are able to ascertain their financial position. Balance sheets provide an insight into business performance, the relationship between accounts receivable and inventory management and ultimately the extent to which a business is liquid or solvent.
It is quite common for assets, particularly infrastructure, to be grossly undervalued which means that anyone looking at your balance sheet including your financiers, suppliers, potential shareholders and investors will not see the true picture. The strength of your balance sheet could be significantly understated.
The fundamental equation of balance sheets is:
Assets = Liabilities + Equity
Property, plant and equipment (PP&E) fall under the tangible and fixed categories of assets. Generally, these types of assets comprise the majority of value in a business, particularly companies in the manufacturing, mining, construction and transport industries as they are more capital-intensive. Therefore, it is critical that these assets are professionally valued to ensure their value, and in turn the value of the company, is accurately determined.
Exacerbating this is the current global shortage of new and 2nd hand equipment in all of these industry sectors.
Our friendly team is backed by over 300 years of experience and has one of the largest teams of full-time and contracted valuers, auctioneers and specialist valuation consultants in Australia. We provide a nationwide service, including all capital cities and remote locations. In addition to this, we may be able to conduct Facetime valuations for remote assets based on the asset information and photographs provided by your staff This significantly reduces costs and turnaround times for our valuation reports.
