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The difference between current and non-current assets, by bookkeepers for small businesses in Sydney

An asset is a part of the Balance Sheet, which falls in line with your financial statements, but knowing what kind of asset you have and how to categorise them is important. Our bookkeepers for small businesses in Sydney will explain the difference between a current and non-current asset.

If we look at current assets, we can see that their purpose of being put onto the balance sheet is that they will be converted to cash within a 12-month period.

While on contrary to this, non-current assets are long-term assets that a company expects to hold over one fiscal year that could not be converted to cash within the 12-month period. These usually consist of investments such as cars, homes and equipment.

Be sure to contact our bookkeepers for small businesses to ensure you have your assets categorised accordingly.