Category: Accounting software and technology

How fixed asset management helps protect intellectual property

Intellectual property theft is a serious concern for many organizations. In most companies, intellectual property is the lifeblood of success. It is crucial for businesses to maintain security around these precious fixed assets. According to a study from CERT, a division of the Software Engineering Institute at Carnegie Mellon University, Intellectual property theft takes many forms. Thieves may target trade secrets, source code, customer information or proprietary software, among other assets. Cases of intellectual property theft occur frequently, and sometimes the security leak is internal. Packers Plus Energy Services Inc. recently won a case against a previous employee who took a…

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What goes into a fixed asset entry?

Any business with a significant number of fixed assets should utilize fixed asset accounting practices. Improper fixed asset management leads to compliance issues, and companies may end up paying more than necessary for their property taxes if they account for assets that no longer exist. Fixed asset management helps organizations ensure they properly track and depreciate property on the register. To ensure best accounting practices, businesses need to record everything about their fixed assets that they can. Here are the attributes that you might consider including in your fixed asset register: Purchase information Information regarding the initial purchase of the item is…

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4 ways to increase return on fixed assets

Companies often need to invest in fixed assets to grow their businesses. Fixed assets are any piece of property or equipment that enables companies to enact business. When companies invest more in property, this can be seen as a sign of growth. On the other hand, just because a company hasn't purchased any new assets doesn't necessarily mean the business isn't doing well. In fact, companies with less fixed asset turnover may simply be using current fixed assets more effectively. Return on assets, or ROA, demonstrates businesses are using their property effectively to generate a profit. The basic formula is…

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Calculating fixed asset turnover rate

Fixed asset management software helps companies with the ins and outs of fixed asset accounting. For instance, fixed asset turnover refers to how effectively a company is using its property to generate revenue. In short, fixed asset turnover demonstrates how effectively a company is using its fixed assets overall. Businesses can calculate this number by dividing net revenue by average fixed assets. Why does it matter?  Fixed assets represent a significant investment and businesses want to make sure they are making the most of their investment. The equipment a business buys needs to contribute to overall revenue. Calculating fixed asset turnover ratio…

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How to save money with better fixed asset management

Greater efficiency with fixed asset accounting practices saves companies money. While many companies are managing fixed assets in some way, integrating better processes reduced outmoded practices and increases return on investment. Here are a few of the ways companies can expect to save resources with improved fixed asset management practices.  Eliminate inefficiency When companies manage depreciation and other components of fixed asset accounting on spreadsheets, they likely waste a lot of time hunting down the information they need. Lack of automation can elongate the time needed for inventories and audits. This adds time onto processes that can already be time-consuming. When…

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