Is Your Fixed Asset Management Reasonable and Appropriate?
In order to maintain adequate controls and observe compliance measures pertaining to fixed assets, companies must follow the Generally Accepted Auditing Standards set by the American Institute of Certified Public Accountants’ Auditing Standards Board. Fixed asset auditing standards are primarily covered by AU sections 328 and 342. Section 328 AICPA defines the purpose of this [...]
Explaining Tangible and Intangible Fixed Asset Categorizations
Fixed assets typically stay on a company’s books for at least a year, and are used to help run the business and generate income. Their value decreases over time due to wear and tear, age and obsolescence in accordance with asset depreciation schedules. They take a variety of forms – including land, buildings, vehicles, machinery [...]
Why Upgrade to Fixed Asset Management Software?
Upgrading to fixed asset software is a wise choice for your company for a number of reasons. Let’s take a look at a few of them: Mitigating inaccurate depreciation calculation As anyone who’s ever worked with spreadsheets knows, they are extremely susceptible to error because the formulae they use must be entered by hand. The [...]
Types of Fixed Asset Disposal
There are many reasons why a company may want to remove a fixed asset from its books, and the form of disposal action taken by your business will impact your tax liability in different ways. For instance, if you sell a fixed asset for a profit, you will be required to recapture the depreciation and [...]
Taking a Cost-Saving Approach to Fixed Asset Acquisition
In their first year of business, companies can rack up considerable expenditures. There are startup costs related to license acquisition and business registration fees, for example, as well as a slew of ongoing operating costs, such as utilities, rent and wages. During this time, the business will likely make a significant number of fixed asset [...]