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How are construction firms affected by TIPA 2014?

The passing of the Tax Increase Prevention Act of 2014 brought a swath of tax extensions that had already expired with the 2013 tax year. While these extensions didn't really help individuals and businesses make solid purchases because the law was only signed on Dec. 19, there are still benefits to be had based on individual and corporate tax returns. Taking advantage of these tax benefits for the year may result in refunds that can be used for capital investment such as fixed assets in the coming year. This is especially the case with construction companies. A large number of…

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Managing obsolete fixed assets

Fixed asset management requires more than maintaining certain equipment and properties. It also means knowing what can be done about items that are no longer viable in a business. For example, some assets may be lost because of damage from severe weather, while others may be stolen. There are also matters of how to account for machines or other things that are no longer physically available but are still on the books. However, one of the more significant problems that businesses run into when handling fixed assets are when they're no longer useful. Obsolescence can greatly affect how companies apply…

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Dealing with inventory write-offs

Fixed asset management requires a significant amount of accounting practices that run in conjunction with inventories, reviews and tracking. This is because these properties have values that contribute to the overall financial picture of the company. Without proper depreciation and amortization, how much a business is worth can be misstated, both in financial statements and on tax returns. That could lead to significant losses, either through legal penalties or missed opportunities. But what happens to assets that no longer have a use in the company, or are simply no longer available? These assets have to disposed of in a certain fashion,…

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Budget effects of the Tax Increase Prevention Act of 2014

In late December 2014, prior to the holidays, President Barack Obama signed the Tax Increase Prevention Act of 2014. The law extended 52 different tax incentives that had expired with the 2013 tax year, intending to extend them the 2014 and sometimes 2015 tax year, depending on the circumstance. The most significant of these was the bonus depreciation, which allowed a company to depreciate up to half the value of a given fixed asset in the first year after purchase. In addition, there were extensions to the more lenient rules of Section 179 of the tax code, as well as…

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Why companies should avoid using spreadsheets for asset management

There are many ways to manage fixed assets and inventory. However, many methods just don't work. The use of pen and paper can cause a variety of issues, not the least of which have to do with coordination, duplication and keeping records. When computers came into play, many businesses thought this would solve all their problems with inventory. However, while the programs did increase accuracy, the end result was still riddled with all-too-human errors, some of which went undetected until after a disaster struck. This is especially the case with what many programs consider the primary asset tracking method, the spreadsheet….

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