Category: Fixed assets for SMB

How to prevent fixed asset management fraud

All companies want to believe their employees are honest and loyal. However, employee thefts and fraudulent activity occur frequently. Two of the best defenses to prevent this sort of activity are thorough fixed asset management practices and a software platform that can achieve greater visibility and security. More prevalent than businesses realize A study from University of Cincinnati criminal justice doctoral student Jay Kennedy found 64 percent of small businesses have experienced employee theft, but only 16 percent reported it to the police. Cash was the asset most likely to be stolen, but 14 percent of thefts were tools and equipment. The report…

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Explosion in New York City highlights need for business disaster plan

Disasters can hit any place at any time, and many businesses are not prepared. A fixed asset management plan, as well as insurance, can prevent businesses from closing their doors permanently when the unexpected occurs. A recent case in New York City highlights the need for a plan in case something goes awry. Near the end of March, an explosion in East Village destroyed three buildings on Second Avenue, and several people were killed, The New York Times reported. The disaster has had long-reaching effects, including disruption of cash flow for many businesses located on the block. According to Crain's New York Business, the…

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Rethinking fixed asset accounting during tax season

When tax season rolls around, it's vital to take fixed assets into account. Companies need to have a handle on every piece of property. Many issues can arise if they don't. Companies have several goals during every tax season. The first is to remain compliant with the Internal Revenue Service, and the second is to save as much money as possible while doing so. Better fixed asset management practices can help businesses keep track of their property to get every dollar back that's coming to them. Conquer ghosts and zombies Without a method for dealing with fixed asset management, many companies end…

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Proper management of excess assets

Fixed asset management means handling a large number of assets at any given time to benefit certain business practices. Most importantly, they can affect the value of a company over time, which in turn can impact taxes and acquisitions. Having a good and accurate handle on fixed assets can make a major difference overall in terms of profitability due to overhead. That's assuming that a company has exactly the assets they need. However, a company may sometimes have too many fixed assets on hand. There are various reasons that this can happen. The important thing to do in this event, then,…

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Common mistakes in conducting asset inventory

Fixed asset management requires maintaining a consistent and regular inventory count, especially for movable goods such as equipment and furnishings. Without conducting this on a regular basis, some items may go missing, new things fail to get put into the general ledger as a fixed asset and some disposed or sold goods are unaccounted for in terms of adjustments. This is especially important during tax season. However, mistakes can be made during the physical inventory that can complicate matters greatly. Utilizing asset inventory software can be a great way to mitigate this problem, but it first requires knowing what errors…

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