Category: Fixed asset management

Handling a storm’s aftermath with business interruption insurance

Companies tend to underestimate the impact of severe weather. When a major storm hits, the damage caused by the storm can greatly undermine business operations. In addition, organizations typically have to make repairs, account for lost fixed assets and replace them, as well as confirm damages overall to specific properties. The combined parts of this situation can result in a severe disruption in operations that can last up to several days if not weeks, depending on the severity of the weather event. One way of addressing this is to look into business interruption insurance. Combining it with effective asset management systems can help a manufacturer…

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The advantages of using a barcode inventory system

When managing fixed assets, there is a need for a system to properly count and track them. Counting them by hand and recording them with paper leads to records that are filled with mistakes and consistently out of date. However, there are several tagging systems that a company can use to perform asset tracking before, during and after inventory counts. Among the most common of these is using printed barcodes and then scanning them when needing to follow or record specific aspects of fixed inventory. Combining a barcode inventory system with fixed asset accounting can give companies a better handle on their equipment, parts and…

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Making use of RFID in asset tracking

There are various ways of handling fixed assets in a business environment. Finding out where assets are can be an important aspect of physical inventory accounting, as well as assessing the value of a company through combined depreciation and amortization. For many businesses, placing bar codes may be a useful solution, but it requires a lot of extensive counting and reading. Doing subsequent scans can be tiresome, and take a lot out of time during inventory counts. As a consequence, businesses should consider developing an asset inventory strategy using radio frequency identification tags as the means of monitoring inventory. Calling out in…

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Understanding the difference between depreciation and amortization

There are different ways of handling fixed assets when trying to write off their value. For tax purposes, an expense can't be completely written off, simply because companies will likely be using it for more than one year. There are two different approaches to this based on what is actually needing to be written off. One way is through the use of depreciating assets over time. The other is performing asset amortization. Both are sometimes seen in the same context and used interchangeably, but there are some distinct differences between the two that people should know about. The things you can touch The…

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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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