Category: Accounting software and technology

Determining the useful life of a fixed asset

Fixed asset management requires knowing how long properties are expected to last. Depreciation allows businesses to write off at least a part of of the expenses of purchasing new equipment, but only a certain amount. This is meant to give businesses a chance to save money in taxes over the course of owning a specific property or good. However, this process means taking into consideration how long the asset is expected to last. Establishing the useful life of the asset can help businesses make an accurate depreciation estimate, helping perform better accounting over the long term. A limited lifespan The useful life…

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Preparing for a physical inventory count

One of the most important aspects of asset accounting is knowing the physical inventory of all fixed assets. This does include properties, but equipment and parts may have a greater focus, since those can be moved around various offices and warehouses. Inventory accounting software can help manage these stocks in a way that is easy and capable of reconciling any discrepancies. Of course, in order to have an inventory that works, a company should regularly undertake a physical inventory count all throughout the company. Because the task can take a lot of time out of business operations, to avoid mistakes, preparing for the…

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In-vehicle surveillance helps maintain vehicle fleet assets

Vehicle fleet management takes a very specific aspect of fixed assets for many companies and turns it into its own operation. It's more than just about making sure the vehicles are in top shape. There's also the matter of drivers being able to operate the machinery with proficiency, securing the items against theft and vandalism as well as developing measures to minimize insurance liability claims. Security is incredibly important for both vehicles and drivers both inside and while in operation. That's why in-vehicle surveillance cameras are important aspect of any fleet management situation. Spying on everything In-vehicle surveillance takes the form of cameras…

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Establishing strong inventory cutoff analysis

Physical inventory counts are an important part of any fixed asset accounting. A consistent count on a continuous basis ensures that the general ledger has a reliable answer when it comes to evaluating the overall property and value of the company. However, completing counts can be a difficult task, simply because the nature of the business means stopping operations long enough to do a count may be impractical. Developing a regular cutoff on inventory receivables can help strengthen a company's control over its assets. Through cutoff analysis and effective planning, an up-to-date value of the company can be attained. Where to stop…

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Common spreadsheet mistakes when managing assets

Fixed asset management is not an easy task. It requires a lot of inspections, reporting and calculations to account for the depreciation of certain properties and equipment. As a consequence, there's a lot of paperwork to cover everything that needs to be assessed. Most companies still rely heavily on spreadsheets that require a lot of manual data entry. While programs like Microsoft Excel help handle extensive calculations, that doesn't change the fact that accountants can still make mistakes. These errors can cost companies millions of dollars. Using fixed asset software helps calculate depreciation, and other features can automate the entire process without having to make common…

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