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Listing Your Web-Based or Remote Business as an Asset

Listing Your Web-Based or Remote Business as an Asset

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There are many reasons why you might want to list your web-based business as an asset, not least of which is perhaps if you wish to appease your bank and get them to loan you some money you need, whatever it is you want the loan for. A bank would be quick to accept a traditional brick-and-mortar business or even just part of it as collateral to grant you a loan, but because it proves to be a bit challenging to place any sort of tangible value on a web-based business (even a profitable one), banks operating on criteria set a few decades ago generally don’t want to recognise web-based businesses as assets, unless it’s as big as a Google, Amazon, Facebook, etc.

There are few ways through which you can bring to light the obvious value of your web-based business however so that you could list it as an asset if needs be. Your aim could even be to sell it perhaps or to make use of its profitability as a reference to either get a particular job you’re eyeing, or perhaps to get awarded a project / tender / contract, etc.

Register it Formally

Register your web-based business formally with the relevant authorities, even if you list your residential home address as the business’ official office premises. Not only is this a tax break, but it also just otherwise gives remote businesses that much-needed physical presence people still place huge value on, even in this increasingly digital age we’re living in.

Attach Tangible Assets to it

Unfortunately attaching tangible assets to your business is not as easy as just writing them in, especially since you naturally want to separate your personal financial affairs from those of your business. The whole point of registering your business, even if it’s a web-based one, is so that you can separate its liabilities from you as an individual. So while your residential home is listed as your official business premises, do not transfer ownership of the home (if you own it of course) to your business.

Attaching tangible assets to your web based business can however be done through just about any financial decision you take, like perhaps if you secured car financing from a bad credit car finance specialist, list that as a car you’re purchasing to perhaps lease to the business. Even if you’re not in the online business of selling goods which need to be delivered, per se, the vehicle is definitely something which any business can use as an asset.

Keep Proper Accounting and Financial Records

The whole point of operating your business online is perhaps to totally bypass the physical overheads often associated with a traditional brick-and-mortar business, so it would perhaps be counter-intuitive to hire full time financial staff such as an accountant. It’s still important to keep financial records however and it’s perhaps the most important step you can take to ultimately be able to list your web-based business as an asset.

Make use of accounting software (it’s pretty affordable these days) and then perhaps get in a bookkeeper to do up the books officially once every financial year.

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Catherine
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Catherine

Blogger & Mother at Career Zine
Avid blogger and career path expert who loves to help people fulfil their dreams.Currently raising my family and walking my dog when i'm not on this site.
Catherine
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