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How to perform an asset inventory

Fixed asset management is a necessary part of accounting at most companies, especially when organizations consider that up to 20 percent of an their assets may no longer actually exist, according to American Appraisal. However, too many companies have never performed an internal audit of their fixed assets, which means they could be leaving many resources unaccounted for. One of the first steps in getting started with a fixed asset management program is identifying pieces of property and developing a system for tagging everything from computers to desk chairs. Depending on the size of an organization, this may be no easy feat….

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Uncover the hidden money in fixed assets

There's no doubt that fixed asset management is a central part of accounting, but many companies don't understand quite how vital it is. Fixed assets often make up a large component of a company's investments. Having greater knowledge about fixed asset management can allow companies to uncover hidden cash and improve business. Extra deductions There may be a wealth of tax deductions hidden in fixed assets. If companies haven't performed a cost segregation study, it's hard to tell for sure. According to Commercial Real Estate's Global Standard for Professional Achievement, cost-segregation studies have immense value. Through this process, companies make…

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Illinois has proposed a bill to eliminate 25 percent of its fleet

Vehicle fleets are one of the most important pieces of property a company has in its possession. However, cars, trucks, vans and even planes can also be complicated to monitor and keep track of, since they are mobile. Vehicles are also expensive, which is why Illinois is considering requiring government organizations to trim down their fleets. In this kind of event, the right fixed asset management software makes all the difference. According to the Chicago Sun Times, a proposed bill will require Illinois to sell about one-quarter of its entire fleet. Under the bill, the state will sell vehicles that are driven less than…

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The challenges of calculating useful life for fixed assets

One of the key aspects of fixed asset management is calculating useful life for fixed assets. As defined by Investopedia, the useful life of an asset is how long the piece of property can be used before its value has depreciated completely. Each type of equipment, whether it's information technology, books or audiovisual equipment, have differing useful life averages. How to estimate useful life The first important thing to remember is that useful life may differ from physical life, and in many cases, the estimate is subjective. A piece of equipment can be functional and outdated at the same time. According to…

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7 reasons to invest in asset accounting software

Once businesses reach a certain size, fixed asset accounting generally becomes a necessity. Small businesses have less difficulty keeping track of and accounting for all property. However, as enterprises grow, managers need to set up a system to keep track of assets, which can be desks, chairs, vehicles, computers and more. As a growing business, it may be difficult to see the immediate benefits of investing in fixed asset management software. However, there are numerous reasons to move toward better processes for managing fixed assets. Here are the top seven reasons that companies can benefit from fixed asset management platforms:  1. Potential audits…

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