Calculate Total Assets: A US Small Business Guide

For US small businesses, understanding financial health is essential, and the balance sheet serves as a crucial tool in this endeavor. The Small Business Administration (SBA) offers resources that often highlight the importance of asset evaluation in securing loans and attracting investment. A key component of the balance sheet, total assets, represents the sum of everything a business owns, from cash and accounts receivable to real estate and equipment. Cloud-based accounting software like QuickBooks, assists business owners to record these assets efficiently. This guide explains how to calculate total assets, providing a step-by-step approach for business owners to gain a clear snapshot of their company's financial position.

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions, steering your company towards stability and growth.

What are Total Assets?

At its core, total assets represent everything your business owns that has economic value. This includes the obvious, like cash and equipment, but also less tangible items such as accounts receivable (money owed to you) and intellectual property.

Think of it as a comprehensive snapshot of your company's resources, a complete inventory of what you can leverage to generate revenue and build long-term value.

The Importance of Total Assets

Why should you, as a business owner, care about total assets? Because they paint a clear picture of your company's financial strength and its ability to meet its obligations.

A healthy asset base provides a buffer against unexpected challenges and enables you to pursue new opportunities. Without a firm understanding of your assets, you're essentially navigating your business blindly.

Evaluating Financial Stability and Growth Potential

Total assets are a cornerstone of financial analysis. They are used to calculate key financial ratios that reveal crucial insights into your company's performance.

For example, comparing your total assets to your total liabilities (what you owe) provides a quick indicator of your solvency – your ability to pay your debts.

A higher asset-to-liability ratio generally suggests a stronger financial position. Analyzing trends in your total asset growth over time can also reveal the overall health and expansion rate of your business.

Empowering Informed Decision-Making

Ultimately, understanding total assets equips you with the knowledge you need to make sound business decisions.

Are you considering taking out a loan to expand operations? Knowing your current asset base will help you assess your borrowing capacity and negotiate favorable terms.

Are you thinking about selling your business? A clear understanding of your assets is essential for determining its fair market value and attracting potential buyers.

In short, knowledge of your total assets is not just for accountants; it’s a critical tool for every business owner who wants to steer their company towards sustained success. It’s about empowering yourself with the information necessary to make confident, strategic choices that drive growth and secure your company's future.

The Asset Dream Team: Key Players in Asset Management

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions, steering your company towards stability and growth. But you don't have to navigate this complex landscape alone. Behind every successful business, there's often a team of financial professionals working diligently to ensure accurate asset management. Let's meet the key players.

Accountants: The Architects of Financial Clarity

Accountants are the cornerstone of asset management. They are responsible for designing and maintaining the system for calculating assets.

Accountants meticulously record financial transactions, classify assets correctly, and generate financial statements that provide a clear picture of your company's financial position. Their role goes beyond just number crunching; they interpret the data to offer insights into your business's performance and potential.

Accountants also help ensure compliance with relevant accounting standards and regulations, a crucial aspect of maintaining transparency and building trust with stakeholders.

Bookkeepers: The Daily Guardians of Your Assets

While accountants provide the strategic overview, bookkeepers are the boots on the ground. They handle the day-to-day task of tracking and recording every transaction that impacts your assets.

Think of them as the record keepers of your financial history. They meticulously maintain records of cash inflows and outflows, asset purchases and sales, and depreciation schedules.

Their diligence ensures that your financial records are always up-to-date and accurate, providing a solid foundation for informed decision-making. Accurate bookkeeping also allows for efficient tax filing and helps reduce the risk of penalties.

CPAs (Certified Public Accountants): The Experts in Financial Assurance

CPAs are seasoned professionals who hold a higher level of expertise than general accountants. They have undergone rigorous training and passed a comprehensive examination to earn their certification.

They play a crucial role in providing expert advice on financial reporting, asset valuation, and tax planning.

CPAs can offer valuable insights into complex accounting issues, ensuring that your financial statements are not only accurate but also compliant with all applicable regulations. They can also perform audits, providing an independent assessment of your financial health.

Financial Advisors: Navigating the Financial Landscape

Financial advisors take a broader perspective, helping you understand how your asset base fits into your overall financial goals. They analyze your assets, liabilities, and cash flow to develop a comprehensive financial plan tailored to your specific needs.

They can advise you on investment strategies, risk management, and long-term financial planning, helping you make the most of your assets to achieve your business objectives.

Financial advisors can also help you understand the tax implications of your asset decisions, ensuring that you are maximizing your after-tax returns.

Decoding Asset Terminology: Essential Concepts Explained

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions, steering your company towards stability and growth. Before we dive into calculating total assets, it's crucial to establish a solid understanding of the core terminology. This section will demystify the essential concepts, setting the stage for a clear and confident approach to asset management.

Current vs. Non-Current Assets: The Fundamental Difference

The first distinction to grasp is the difference between current and non-current assets. This classification hinges on how quickly an asset can be converted into cash.

Current assets are resources expected to be converted to cash or used up within one year or the normal operating cycle of the business. These are your readily available resources.

Non-current assets, on the other hand, are long-term investments that are not easily converted into cash and are intended to be used for more than one year. They represent the backbone of your operational capacity.

Diving Deeper: Current Assets

Let's explore the common types of current assets:

• Cash: This is the most liquid asset, including physical currency, bank deposits, and readily available funds.

• Accounts Receivable: This represents money owed to your business by customers for goods or services already delivered. Effective management of accounts receivable is crucial for maintaining healthy cash flow.

• Inventory: This includes raw materials, work-in-progress, and finished goods held for sale. Accurate inventory tracking is essential to prevent losses and optimize purchasing decisions.

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Understanding Non-Current Assets

Non-current assets are the investments that power your business's long-term operations:

• Property, Plant, and Equipment (PP&E): This category encompasses land, buildings, machinery, vehicles, and other tangible assets used in the production or delivery of goods and services. PP&E is subject to depreciation, reflecting its gradual wear and tear over time.

The Intangible World: Assets You Can't Touch

Not all assets are physical. Intangible assets are non-physical resources that provide economic value to your business. Common examples include:

• Patents: Exclusive rights granted for an invention, providing a competitive advantage.

• Trademarks: Symbols, designs, or phrases legally registered to represent your brand.

• Goodwill: This arises when one company acquires another, representing the excess of the purchase price over the fair value of identifiable net assets. Goodwill reflects the acquired company's brand reputation and customer relationships.

Essential Concepts: Building a Solid Foundation

Beyond the types of assets, several key concepts are vital for understanding asset management:

Liquidity: The Lifeblood of Your Business

Liquidity refers to the ease with which an asset can be converted into cash without significant loss of value. High liquidity is essential for meeting short-term obligations.

Depreciation: Accounting for Wear and Tear

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It reflects the gradual decline in the asset's value due to wear and tear, obsolescence, or other factors.

Amortization: The Intangible Equivalent of Depreciation

Amortization is the process of allocating the cost of an intangible asset over its useful life. Similar to depreciation, it reflects the gradual decline in the asset's value.

Fair Market Value: A Realistic Assessment

Fair Market Value (FMV) is the price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts. FMV is often used for asset valuation and tax purposes.

Cost Basis: The Foundation of Asset Value

Cost Basis is the original cost of an asset, including any expenses incurred to acquire it. It serves as the starting point for calculating depreciation, amortization, and capital gains or losses.

Book Value: A Snapshot of Current Worth

Book Value represents the asset's original cost less any accumulated depreciation or amortization. It reflects the asset's value as recorded on the company's balance sheet.

Goodwill: The Value of Reputation

Goodwill, as mentioned earlier, arises in business acquisitions. It represents the intangible value associated with a company's reputation, customer relationships, and brand recognition.

By understanding these fundamental concepts, you'll be well-equipped to navigate the complexities of asset management and make informed decisions that drive your business forward.

Arm Yourself: Platforms and Tools for Efficient Asset Management

[Decoding Asset Terminology: Essential Concepts Explained Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions, steering your company towards stability and g...]

Effectively managing your assets requires more than just knowing what you own; it demands a strategic approach supported by the right tools. Selecting the appropriate platforms and systems is critical for efficient asset tracking, accurate valuation, and informed financial decision-making. Let's explore the essential resources that can empower you to take control of your asset management.

The Foundation: The Balance Sheet

The Balance Sheet, also known as the Statement of Financial Position, serves as the cornerstone of asset reporting. It provides a snapshot of your company's assets, liabilities, and equity at a specific point in time.

The asset section of the balance sheet categorizes assets into current and non-current, offering a clear view of your company's resources. Regularly reviewing your balance sheet is crucial for understanding your asset composition and overall financial health. Understanding and interpreting this document will tell you which assets are the most important to your company.

Automating Asset Management: Accounting Software

In today's digital age, accounting software is indispensable for efficient asset management. These platforms automate many of the manual processes involved in tracking, valuing, and reporting assets.

Popular Accounting Software Options

Several robust accounting software options are available, each offering unique features and benefits. QuickBooks, Xero, and FreshBooks are among the most popular choices for small and medium-sized businesses.

• QuickBooks: A comprehensive solution offering features like invoicing, expense tracking, and detailed reporting, making it a versatile choice for various businesses.
• Xero: Known for its user-friendly interface and cloud-based accessibility, Xero provides real-time financial data and seamless integration with other business applications.
• FreshBooks: Designed primarily for service-based businesses, FreshBooks focuses on invoicing, time tracking, and project management, offering a streamlined approach to managing finances.

How Accounting Software Automates Asset Tracking and Reporting

These tools offer features that significantly streamline asset management. They automate tasks such as:

• Asset Recording: Easily record new assets and their initial values.
• Depreciation Calculation: Automatically calculate and track depreciation expense.
• Financial Reporting: Generate balance sheets, income statements, and other reports with ease.
• Reconciliation: Streamline bank and credit card reconciliation processes.

By automating these processes, you reduce the risk of errors, save time, and gain a clearer picture of your financial position.

Tracking Depreciation: Depreciation Schedules

Depreciation is a critical concept in asset management, as it reflects the gradual decline in value of tangible assets over time. Maintaining a depreciation schedule is essential for accurately tracking this decline and ensuring that your financial statements reflect the true value of your assets.

A depreciation schedule typically includes information such as the asset's cost, useful life, depreciation method, and accumulated depreciation. Using this schedule helps you calculate depreciation expense accurately and consistently.

Managing Inventory: Inventory Management Systems

For businesses that hold inventory, an inventory management system is essential. These systems help you track inventory levels, manage costs, and optimize stock levels.

A robust inventory management system can:

• Track Inventory in Real-Time: Monitor inventory levels as they change.
• Automate Stock Replenishment: Set up automated reorder points.
• Calculate Inventory Costs: Use methods like FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) to calculate the value of inventory.
• Reduce Stockouts and Overstocking: Maintain optimal inventory levels.

By implementing an effective inventory management system, you can minimize carrying costs, improve order fulfillment, and enhance customer satisfaction.

Leveraging Financial Institutions: Banks and Loan Statements

Banks and financial institutions play a crucial role in managing your cash assets and providing financing. Leveraging these institutions effectively is essential for optimizing your asset management.

• Cash Management: Banks offer various tools for managing cash flow, such as online banking, wire transfers, and lockbox services.
• Loan Statements: Regularly reviewing loan statements helps you track outstanding balances, interest rates, and repayment schedules.
• Investment Accounts: Financial institutions provide access to investment accounts that can help you grow your assets over time.
• Lines of Credit: Securing a line of credit can provide access to funds for short-term needs, helping you manage cash flow effectively.

By effectively utilizing these resources, you can optimize your cash management, reduce borrowing costs, and enhance your overall financial stability.

The Rules of the Game: Accounting Principles and Practices

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions. But even with the right tools and team, understanding the core accounting principles is essential to getting an accurate and reliable picture of your company’s financial health. Let's explore the fundamental rules that guide asset calculation and reporting: Generally Accepted Accounting Principles (GAAP), Accrual Accounting, and Capitalization.

The Guiding Light: Generally Accepted Accounting Principles (GAAP)

GAAP serves as the foundation for sound financial reporting. It’s a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Think of it as the universally understood language of finance.

Adhering to GAAP ensures accuracy, consistency, and comparability in financial statements. This means that your financial reports are prepared using standardized methods, allowing stakeholders – investors, lenders, and even internal management – to understand and compare your company's performance against industry benchmarks or its own historical data.

Why is GAAP Compliance Crucial?

Compliance with GAAP provides credibility. It’s a signal to the outside world that your financial information is reliable and trustworthy.

This is particularly important when seeking funding or credit, as lenders and investors rely on GAAP-compliant financial statements to assess risk and make informed decisions. Moreover, GAAP helps maintain transparency, preventing misstatements and unethical practices.

The Timing is Right: Understanding Accrual Accounting

Accrual accounting offers a more accurate picture of your business's financial performance compared to cash accounting. Instead of simply tracking when cash changes hands, accrual accounting recognizes revenue when it's earned, and expenses when they're incurred, regardless of when the cash is actually received or paid.

For example, if you provide services in December but don't get paid until January, accrual accounting recognizes the revenue in December, when the service was performed. Similarly, if you receive an invoice for supplies in November but pay it in December, the expense is recorded in November.

How Accrual Accounting Affects Asset Reporting

Accrual accounting directly impacts asset reporting, especially when it comes to accounts receivable and accounts payable. Accounts receivable, representing money owed to you by customers, is considered an asset. Accrual accounting ensures that these receivables are recorded as assets as soon as the revenue is earned, even if the cash hasn't yet been collected.

This provides a more realistic view of your company's financial position, especially for businesses with long payment cycles. Likewise, liabilities like accounts payable are recognized when the obligation is incurred, rather than when the payment is made.

Investing in the Future: The Importance of Capitalization

Capitalization is the process of recording an expenditure as an asset on the balance sheet, rather than as an expense on the income statement. This typically applies to expenditures that are expected to provide benefits for more than one accounting period.

Think of purchasing a new piece of equipment. Instead of expensing the entire cost in the year of purchase, you capitalize it as an asset, and then depreciate its value over its useful life.

Capitalization and its Impact on Asset Recording

Capitalization significantly impacts asset recording because it determines which expenditures are treated as assets and how their value is recognized over time.

By capitalizing assets, you're essentially spreading the cost of these investments over the periods they benefit, providing a more accurate reflection of your company's profitability and asset value.

It's important to note that not all expenditures can be capitalized. GAAP provides specific guidelines for determining which costs meet the criteria for capitalization. These guidelines typically consider the asset's useful life, its cost, and its ability to generate future economic benefits. Consulting with an accounting professional can help you determine whether an expenditure should be capitalized or expensed.

Step-by-Step: Calculating Your Total Assets Like a Pro

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions. But even with the right tools and team, understanding the process is vital. So, let's break down the steps.

Here's a comprehensive, step-by-step guide to calculating your total assets with confidence, from initial identification to final verification.

Identify All Assets: The Foundation of Your Calculation

The first step in calculating your total assets is to create a comprehensive list of everything your business owns that has economic value. This includes both current and non-current assets.

• Current Assets: These are assets expected to be converted to cash or used up within one year. Think cash, accounts receivable (money owed to you by customers), inventory, and prepaid expenses.

• Non-Current Assets: These are your long-term investments. These assets have a life of more than one year.

  Examples include property, plant, and equipment (PP&E), land, buildings, vehicles, and long-term investments.

Determine the Value of Each Asset: Choosing the Right Measurement

Once you've identified all your assets, you need to determine their value. The method you use will depend on the type of asset and accounting principles.

• Cost Basis: This is the original purchase price of an asset, including any costs associated with acquiring it (e.g., shipping, installation). Cost basis is generally used for assets like inventory and some equipment.

• Fair Market Value (FMV): This is the price at which an asset could be sold in an open market between willing buyers and sellers. FMV is often used for assets like investments and, in some cases, real estate.

• Book Value: This is the cost of an asset less accumulated depreciation. Book value is commonly used for depreciable assets like equipment and vehicles. Understanding depreciation methods is key here.

  Depreciation methods include straight-line depreciation and accelerated depreciation.

  It’s vital to use the most appropriate valuation method for each asset category to ensure an accurate total asset calculation.

Record Assets in Accounting Software: Automation for Accuracy

Inputting your asset information into accounting software not only streamlines the calculation process but also provides an ongoing record for tracking and reporting.

Most accounting software platforms (QuickBooks, Xero, FreshBooks) have dedicated sections for managing assets.

Here’s a brief overview of how you might approach it:

• Creating Asset Accounts: In your accounting software, set up separate accounts for each asset category (e.g., "Cash," "Accounts Receivable," "Equipment").

• Entering Initial Values: Record the initial value of each asset based on the valuation method you chose in the previous step.

• Tracking Changes: Regularly update asset values as needed due to depreciation, sales, or new acquisitions.

  Regular software updates and proper category usage is also highly recommended.

Calculate Total Current Assets: Summing Up the Short-Term

This step involves adding up the values of all your assets expected to be converted to cash or used up within one year.

If you're using accounting software, this calculation is typically automated. Otherwise, you'll need to manually sum the values from your asset list.

• Accuracy is key—double-check your figures to ensure no assets are missed or incorrectly valued.

Calculate Total Non-Current Assets: Summing Up the Long-Term

Similar to calculating total current assets, this step involves adding up the values of all your long-term assets.

Again, your accounting software should automate this calculation, but manual verification is always a good practice.

This includes the value of items such as property, plant, and equipment (PP&E), land, buildings, vehicles, and long-term investments.

Calculate Total Assets: The Grand Finale

Finally, you're ready to calculate your total assets. This is simply the sum of your total current assets and total non-current assets.

This figure represents the total economic resources your business controls. It's a crucial metric for assessing your company's financial position.

Verify and Review: Ensuring Accuracy and Completeness

Before relying on your total asset calculation, it's essential to verify its accuracy.

• Cross-Reference with Bank Statements: Compare your cash balances and other liquid asset values to your bank statements.

• Reconcile Accounts Receivable: Ensure that the amounts owed to you by customers match your sales records.

• Review Depreciation Schedules: Verify that depreciation is being calculated correctly and consistently.

• Regular Audits: Conducting internal and external audits is a good practice.

Addressing any discrepancies or errors is also a very important step.

Consult with an Accountant or CPA: Professional Assurance

While this guide provides a framework for calculating your total assets, seeking professional guidance from an accountant or CPA is highly recommended.

Accountants can provide expert advice on asset valuation, depreciation methods, and financial reporting requirements. They can also help ensure that your calculations comply with GAAP and other accounting standards.

Their expertise ensures accuracy, compliance, and informed financial decision-making.

Navigating the Turbulence: Common Challenges and Solutions

Understanding your business's total assets is more than just a bookkeeping exercise; it's a fundamental key to unlocking its financial potential. For business owners and entrepreneurs, grasping this concept empowers you to make informed decisions. But even with the right tools and team, understanding and calculating your business assets can present significant challenges. This section delves into common hurdles and provides practical solutions to keep you on the right track.

The Accurate Valuation Maze

Determining the true value of an asset isn’t always straightforward. While seemingly simple, accurately assessing value is a critical first step that affects all subsequent financial interpretations.

The ever-shifting economic landscape, market fluctuations, and subjective factors can create uncertainty. A piece of equipment might be carried on the books at its depreciated cost, but what is it really worth if you were to sell it today?

Strategies for Fair Market Value Determination

To conquer the valuation maze, consider these strategies:

• Embrace Professional Appraisals: When dealing with high-value assets like real estate or specialized equipment, engaging a qualified appraiser provides an unbiased and supportable valuation. This is particularly important for securing loans or attracting investors.

• Conduct Thorough Market Analysis: Research comparable sales in your industry. Websites like eBay or specialized auction sites can provide insight into what similar assets are currently fetching in the open market.

• Consider the "Replacement Cost" Method: How much would it cost to replace the asset with a new one of similar functionality? This can be a useful benchmark, especially for equipment and machinery. Adjust for age, condition, and obsolescence.

• Regularly Review and Adjust: Don't let valuations become stale. Market conditions change. At least annually, revisit your asset valuations and make adjustments as needed. Don't be afraid to write down an asset if its market value has declined.

Managing Depreciation's Impact

Depreciation, the allocation of an asset's cost over its useful life, is a crucial accounting concept. Get it wrong, and it will skew your numbers drastically.

However, choosing the right depreciation method can be perplexing, and incorrect application can lead to inaccurate financial reporting.

Selecting the Right Depreciation Method

• Straight-Line Depreciation: This is the simplest method, spreading the cost evenly over the asset's useful life. It's easy to calculate and suitable for assets that provide consistent benefit over time.

• Accelerated Depreciation (e.g., Double-Declining Balance): This method recognizes a higher depreciation expense in the early years of an asset's life. It's suitable for assets that lose value or become obsolete quickly.

• Units of Production Depreciation: This method ties depreciation to the actual usage of the asset. It's ideal for equipment where wear and tear is directly related to the amount of work performed.

• Consistency is Key: Once you've chosen a depreciation method for an asset class, stick with it. Switching methods mid-stream can create confusion and undermine the credibility of your financial statements.

Taming the Inventory Beast

For businesses that deal with physical goods, inventory management is a critical area for successful accounting. Inventory affects both the balance sheet (as an asset) and the income statement (as cost of goods sold). Poor inventory control can lead to inaccurate financial reporting, stockouts, and excess holding costs.

Effective Inventory Management Systems

• First-In, First-Out (FIFO): Assumes that the first items purchased are the first items sold. Generally matches physical flow and is widely accepted.

• Last-In, First-Out (LIFO): Assumes that the last items purchased are the first items sold. Can provide tax advantages in inflationary environments but may not accurately reflect physical flow.

• Weighted-Average Cost: Calculates a weighted average cost for all inventory items and uses this average cost to determine the cost of goods sold and ending inventory. This method smooths out price fluctuations.

• Just-in-Time (JIT) Inventory: Keep inventory to a minimum by coordinating with suppliers to deliver materials only when needed. Requires precise planning and coordination.

  The selection of LIFO, FIFO, or Weighted Average affects your reported profits and your tax liability!

• Regular Inventory Audits: Conduct physical counts regularly to reconcile book inventory with actual inventory on hand. Investigate and correct any discrepancies promptly.

Handling Accounts Receivable Headaches

Accounts Receivable (AR) represent money owed to your business by customers. They are also often an indicator of future incoming cash flow.

While AR is an asset, uncollectible AR is a real problem that can significantly impact your cash flow and profitability.

Strategies for Managing and Collecting Outstanding Invoices

• Implement Clear Credit Policies: Establish clear credit terms and communicate them upfront to customers. Use a credit application to assess creditworthiness before extending credit.

• Send Timely Payment Reminders: Automate the process of sending payment reminders at regular intervals. Include invoice details and payment options in each reminder.

• Offer Multiple Payment Options: Make it easy for customers to pay by accepting a variety of payment methods, such as credit cards, ACH transfers, and online payment platforms.

• Develop a Structured Collection Process: Establish a clear process for following up on overdue invoices. This may involve phone calls, emails, and, as a last resort, legal action.

• Consider Invoice Factoring: Factoring is a way to free up current capital from unpaid invoices. Consider this when struggling with managing accounts receivable.

Navigating these challenges requires vigilance, a strong understanding of accounting principles, and the willingness to adapt to changing circumstances. By implementing the strategies outlined above, you can gain greater control over your assets and set your business on a path to sustainable financial success.

So, that's the gist of calculating total assets for your small business! It might seem a bit daunting at first, but once you get the hang of identifying and adding up everything your business owns – from cash to equipment – you'll have a clear picture of your financial health. Remember, learning how to calculate total assets is a crucial step in managing your business effectively, and with a little practice, you'll be a pro in no time!