HumanBookkeeping.com™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Book Value means. If we can be of more help explaining what Book Value is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657.
HumanBookkeeping.com™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Book Value means:
You may hear a bookkeeper or financial professional refer to the book value of the asset. The definition is straightforward. Book value is the value of an asset, as it is recorded in the company’s financial books. The book value, however, does not always represent the market value of an asset. For example, it is possible for a machine to carry a $0 book value, but still be functioning. This would occur if the accountant fully depreciated the value of the asset on the company’s books. Potentially, the machine could be sold. If sold, the sales price would be recorded as a gain. The rules for asset valuation vary by asset type. Some assets are adjusted to market value, others are kept at acquisition cost, and others are amortized and depreciated. Since the balance sheet does not set all assets to market value, it is extremely important to run additional corporate valuations when considering a merger, acquisition, or divestiture.
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