Determining the dollar value of an asset can take many forms. Bossy says best management practices include awareness of local business activity and transactions, values highlighted by dealers, suppliers and realtors, and recent appraisals from or performed for lenders.
Taking depreciation into account is also important.
“The difference between the original cost and accumulated amortization is the net book value,” Bossy says.
He recommends using a spreadsheet like Excel or Google Sheets to track market value and net worth and the fluctuations.
“The accountant-prepared balance sheet is always at original cost, less amortization,” Bossy says, adding that FCC software like AgExpert has a function for tracking estimates of market value.