Business owners, are you investing in the right places?

Why you should manage your intangible assets

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In the United States today, more than 50% of all business value is intangible.

Source: Global Intangible Finance Tracker 2009
During the past 25 years, intangible assets have supplanted tangible assets as the key value drivers in the economy.

At the same time, traditional accounting has remained focused on tangible assets.


Tangible & Intangible

assets include:


  • Cash
  • Payments Due
  • Inventory
  • Property
  • Equipment


  • Brands
  • Trademarks
  • Customer Lists
  • Customer Relationships
  • Business Relationships
  • Licenses
  • Patented Technology
  • Databases
  • Goodwill
  • Assembled Workforce
  • Company Culture
  • Business Processes

When you’re running a business, looking after tangible assets consumes a lot of your time.

But a large proportion of the value is intangible.

Market Value of 10 Top Brands in 2013

Market valuations as of 1st April 2013 Source

The proportion of intangible value varies by industry.

The top 7 sectors with the highest proportion of intangible assets

Source: Global Intangible Finance Tracker 2009

For private companies, the value of your intangible assets is realized when you sell the company.

The exact value is determined by the purchaser. More info

You wouldn’t dream of running a business without carefully managing your cash and inventory.

Why do we not have the same processes in place for managing intangible assets which often account for more than 50% of business value? Source

It’s hard running a business.

And sometimes you need a reminder to invest your time and energy in the right places.

Companies that focus on the management and enhancement of intangible assets will be rewarded

Rubin Brown Accountants

So, ask yourself…

How well are you managing your intangible assets?

Which intangible assets are the key drivers of value in your business?

What processes do you have in place for managing these intangible assets?

How many resources do you dedicate to managing and growing these assets?

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