Recent Articles

Understanding repairs in new fixed asset regulations

Fixed asset accounting is often at its most critical during the tax season. By making assessments on the value of given tangible properties, companies can present an accurate picture of the value of their business, which in turn affects the tax bracket they're located and what they owe overall. In recent years, there have been calls for a significant change in how these assets are addressed under the tax code, often in the name of simplification. Recently, the IRS went forward with a major rule change on the expensing of repairs and improvements on tangible properties that are effective with…

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Warren Township fired department replacing damaged fixed assets

Protecting fixed assets needed for business purposes should be a top priority for any organization. Without these tools, it can be virtually impossible to accomplish tasks and meet goals. As a result, having an asset management program in place is a sound strategy for any entity that relies on certain tools in order to get things done. According to a C&G Newspapers report, Warren Township, located in suburban Detroit, is still reeling from a major flood that caused millions of dollars in damage to commercial, public and private property. The Warren Fire Department lost critical emergency management tools needed to…

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The effects of the Alternative Minimum Tax on depreciation

Fixed asset accounting becomes very important with the arrival of tax season. Not having an accurate assessment of the quantity and value of various goods and properties can have two different effects: Either the assets are undervalued and the company is subject to a tax audit, or they're overvalued and the business overpays in taxes. This means taking careful consideration into any variables in taxes that can alter how firms calculate depreciation. This is especially the case when using different methods of taxation, particularly the Alternative Minimum Tax. Understanding the effects of AMT on how a company depreciates its fixed…

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The ideal times to use straight-line depreciation

Various fixed assets require different means to deliver the most value to a business in terms of taxes, resale and contribution to overall net worth. Seemingly minute differences in how a company decides to calculate depreciation can have a great impact on its overall financial health. For many businesses, the use of accelerated depreciation is effective, as it gains the highest value out of the process in case they need to resell or invest in better infrastructure at more frequent intervals. However, there are some assets where that would be not particularly effective, and that is when the more traditional approach of straight-line depreciation…

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Implementing different inventory systems

The key component of fixed asset management is the inventory system. How properties, machinery and furnishings are identified, cataloged and mapped can make a major difference in how a company conducts its operations. Knowing where the right equipment is at any time is an essential, especially on important projects. Being able to maintain a strong inventory can keep things running smoothly and improve efficiency and productivity at a basic level. However, there are different ways to inventory these items, and these should be taken into consideration as the business grows over time. Whatever choice is made, with flexible asset inventory software,…

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