Archive: Mar 2012

Want To Cut Costs? Use Fixed Asset Software

Some companies associate the process of auditing their fixed assets with the idea that sinking significant time and money into the project is unavoidable. Although this is most likely true for those that take a manual approach tofixed asset management, automating the process by setting up a software-based system can yield dividends that are likely to surprise pessimistic companies. Once you’ve entered information about your assets into the software, the technology basically runs itself, negating the need for audits to be conducted from scratch every time. All you need to do is make sure the data is kept updated in…

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Q & A With Guest Blogger Ann Donie Part 2

1.  What is the most common mistake when managing fixed assets? I would guess that the most common mistake might be applying the wrong depreciation method or life for tax purposes, or worse yet, failing to take advantage of tax law changes that allow them to write-off, or fully depreciation, the asset’s cost in the first year. Most people have a good handle on depreciation for their internal book purposes. They keep it pretty simple with the straight-line method and they probably have fixed asset policies for determining what costs to capitalize and what life to assign. But tax laws change…

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Q & A Guest Blogger With Ann M. Donie Part 1

1.  In your opinion, why on earth would a company continue to use a spreadsheet for fixed asset accounting? It seems like doing so would lead to countless errors! I don’t think there is a good reason, but maybe a lack of time to transition to fixed asset software. Or, they may think it’s too complicated. They may not think they have the manpower or the time to switch to a fixed asset solution that would get them off the spreadsheets, but it’s really easier than they think. 2.  Do you have a horror story you could share of a…

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Q & A With Guest Blogger Mary Balmer Part 2

1. What is the most common mistake when managing fixed assets? A common mistake would probably involve assigning the appropriate method and life when categorizing the asset because it’s very difficult. Let’s go to the financial side of things for a moment. There aren’t any published recommendations for categories of assets, in terms of how you should be depreciating them—what methods you should use, what life you should use. And so I’m thinking that probably companies are inadvertently assigning different methods and lives to the same category of assets because it’s done over a period of time. You’ve got people…

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Q & A With Guest Blogger Mary Balmer Part 1

1. In your opinion, why on earth would a company continue to use a spreadsheet for fixed asset accounting? It seems like doing so would lead to countless errors! I think the thing that they like best about spreadsheets is the flexibility, the way they can manipulate the data in the spreadsheet. The downside is that there are no rules built in. It’s only as good as the formulas that they put in. So if there’s an error in the formula, then obviously their number is not going to be accurate. And so, the risk of errors goes up if…

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