Will you be able to recover your asset base after a disaster? There is a tremendous need for documenting your business assets. When an insurance settlement is not large enough to recover your assets, you will have to use other resources to purchase items to replace what was destroyed or stolen. This might even include a need to withdraw money from an investment account. The impact a loss has on cash flow could ultimately close down your business. Statistics show that only 6% of businesses will survive long term after a disaster. Don't let your company become part of this harsh reality; invest in the future of your business.
Why do you need an inventory?
Most small businesses have a rule of thumb to expense anything under $1000. Think of how many items of furniture, electronics and other assets cost less than that. None of these items will be captured on a capitalization or depreciation schedule.
We take the time to understand your business and identify critical assets. Without an inventory, it can take 4 to 12 months to list everything you own and get through the claims process. If you have an inventory, and a fire, theft or natural disaster does happen, your initial claim can be quickly submitted within 24 to 36 hours.
Disaster preparedness and disaster recovery aren't the only reasons you need an inventory for your business.
Other occasions when this information is essential or necessary are:
- Rental and vacation property — document your assets located in furnished rentals
- Verify you have sufficient insurance coverage — an inventory will help you know the true value of all of your business contents.
- Moving — items are all too often misplaced or damaged.
- Storage — thefts and floods are not uncommon in storage facilities.
- Prevent duplicate purchases — current list of assets shows how many and where items are located.
- Proof of value of assets — beneficial when seeking a loan or Line of Credit.
- Sale or purchase of a business — helps create the full picture of value of total assets.