Archive: Oct 2011

Optimizing Your Company’s Fixed Asset Tracking Process

It’s important for your company to have a successful fixed asset tracking system in place for a variety of reasons. Accurate, timely records relating to fixed assets are required for your balance sheet to offer a precise reflection of your company’s finances, and are also helpful in terms of inventory tracking, depreciation and theft prevention. Identifying the assets that need to be managed is the initial step of setting up a fixed asset management process. The concept of this sounds deceptively simple until you consider all the items belonging to your business that fall under the fixed asset umbrella –…

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Announcing the Sage Fixed Assets Con-Test!

Are you looking to replace some old fixed assets? Check out Sara in “The Con-Test” for your chance to win a $500 AmEx gift card to replace those old fixed assets. Visit our Facebook Sweepstakes page to enter now! There are many ways to increase your chances of winning. Along with entering our Facebook con-test, you can: Follow us on Twitter and use the hashtag #FixedAssetsConTest to spread the word Subscribe to this blog The Con-Test ends 12/5 so enter now!

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Construction In Progress – What It Is and How To Record It

The fixed asset life cycle can be split up into three stages – acquisition, implementation and disposal. The period of time between acquisition and implementation can be brief or more extended, depending on the nature of the assets in question. Some fixed assets, such as computers and desks, take little to no time to set up and can be placed into operation very soon after they’ve been obtained. However, others – including buildings and production lines – remain in Phase One of the life cycle for a considerably longer period of time before becoming ready for use by the company….

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Depreciation and Amortization

Depreciation and amortization are both methods used to prorate costs associated with assets over their projected lifespans. Both are calculated by subtracting the asset’s salvage value from its original purchase cost. Salvage value is essentially the estimated value that the asset is expected to realize upon its sale at the end of its useful life. Assets that your company does not intend to resell must still be assigned a salvage value for depreciation purposes. Salvage value is used in conjunction with purchase price and accounting method to determine depreciation rates. Although they are essentially the same process, they pertain to…

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End-of-Year Reporting and You

Your company’s year-end report is the most important financial statement of them all. Simply put, your annual report provides a comprehensive level of insight into your business’ activities and financial performance for the past fiscal year. Tax preparation, decision-making and future reference are based more on end-of-year reports than any other financial statement, so it is especially important that the information reflected is accurate and timely. End-of-year statements are comprised of four types of documentation: Your annual profit, loss and balance sheet, which depicts your company’s assets, liabilities and owners’ equity A summary of your tax filings Transaction details for…

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