Recent Articles

Proper management of excess assets

Fixed asset management means handling a large number of assets at any given time to benefit certain business practices. Most importantly, they can affect the value of a company over time, which in turn can impact taxes and acquisitions. Having a good and accurate handle on fixed assets can make a major difference overall in terms of profitability due to overhead. That's assuming that a company has exactly the assets they need. However, a company may sometimes have too many fixed assets on hand. There are various reasons that this can happen. The important thing to do in this event, then,…

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The impact of leasehold improvements

The field of fixed assets isn't strictly limited to single objects or properties. This is especially the case with land-based property, where buildings often house different businesses or residents depending on the circumstance. Because of the clientele, there are often different demands from lessees to change the structure of the building to better suit their needs. Property managers and other management staff often make these adjustments in order to justify a rent increase or invoke other profitable measures. However, what makes these leasehold improvements important is that they are themselves fixed assets. This can make the process of accounting for them…

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Fair value accounting’s impact on fixed assets instigates changes

Fixed assets of all kinds have been assessed by their market or "fair" value in the last few decades. It's considered a standard practice in comparison to the other common method of utilizing the historical value of goods. There are many benefits to fair value, in that it allows a more fluid movement of assets as well as a more flexible estimate on the value of a company. Asset accounting software has made many of the associated processes that go with using this value far easier to attain. However, the precise definition of fair value has undergone some scrutiny in…

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Understanding different intangible assets

The variables of tangible fixed assets are well known. There are the materials and supplies used to create products. The machines that develop the raw minerals or parts into the products made by the company are also considered fixed assets, as are any of the consumables that make the equipment work such as fuel and lubricant. The warehouse and land that is owned by the company are properties and thus considered tangible assets as well. Intangible fixed assets, on the other hand, are a different matter entirely. Because they lack physical form, there are varying definitions of what's considered intangible….

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The benefits of the cloud for fixed asset accounting

In fixed asset accounting, there is often a lot of inventory that has to be addressed, assessed and depreciated over time. Physical inventories are required, as well as different schedules for the various equipment and properties that a company can own. These processes can be spread out over a multitude of offices, which can cut into efficiency. Accountants should seek to find ways of organizing their assessments done quickly to save time and money as well as improve accuracy on the general ledger. One way of doing this is to move fixed accounting software, as well as general accounting, to…

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