Archive: Sep 2011

The Hows and Whys of Inventory Tracking

If your company is looking to improve its inventory management system, there are a variety of options available. These range from simply adding bar code labels that will facilitate inventory tracking for specific items to setting up a passive or active radio frequency identification system. But why is it so important to have an inventory tracking program in the first place? Simply put, inventory represents a significant financial investment that is recorded on your company’s balance sheet as an asset. Because of this, it is important to closely track the amount of inventory you have as well as its movement….

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Are Your Assets Working For You?

Regardless of the size of your company or the field you work in, business owners are always looking to optimize their fixed asset depreciation programs, maintenance schedules, budgeting processes and procurement procedures with the goal of maximizing value and minimizing costs – something fixed asset software can help with. Managing your fixed assets effectively is likely to have a positive effect on your bottom line in several ways. Knowing the exact contents of your inventory can help you leverage individual items in the most effective way possible, based on which are used the most and which are so-called “lazy assets”…

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Is Your Fixed Asset Management System Up-to-Date?

Do you know how financially accurate your fixed asset inventory system is? Companies that have manual inventory tracking methods in place tend to conduct full fixed asset audits less often than those that use inventory management software, due to the fact that exhaustive wall-to-wall inventories take up so much time. If that state of affairs sounds familiar to you, it could be putting your business in peril. The majority of your capital is assets, and not having a firm picture of the state your company’s fixed assets are in can lead to insurance and tax overpayments that have a negative…

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Fixed Asset Management Policies and Procedures For Your Company

When drafting company policies related to fixed asset accounting, you should be sure to address every step of the fixed asset life cycle, from purchase planning and actual purchase to the retirement and disposal of the asset once its depreciation has been completed and it has reached the end of its useful life. Here are some specific aspects to consider: Spending limits The purchase of fixed assets is a long-term investment that can often be expensive. Because of this, a system of checks and balances needs to be set up to ensure that all related expenditures are timely and necessary….

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No Accounting for Clarity: Fixed Asset Abbreviations Explained

The fixed asset accounting process can get complicated, so there are a number of abbreviations in use for some common terms and equations related to fixed assets. FA Beginning with the basics, FA stands for fixed assets – namely, the permanent property of your business that’s considered a long-term fixture and is unlikely to be liquidated in the immediate future. Anything from land and buildings to desks and computers falls under the fixed asset umbrella, although your company’s fixed assets can be subdivided into three groups (see below). FAACS Your company’s fixed asset accounting and control system ensures that you…

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