Category: Fixed assets for SMB

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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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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Accounting for patents from start to finish

When it comes to accounting for various fixed assets, the intangible assets can be a little trickier to assess. More often than not, they are original creations or rights that are hard to process in a tangible form as well as basic documentation on how they are supposed to function that yield control over specific properties. All of these particular assets tend to require a different form of valuation for accounting, regulatory and tax purposes. That includes the concept of amortization, which is the intangible form of depreciation. With patents and related intellectual property especially, there is need to follow…

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Key deductions retained with the Taxpayer Increase Prevention Act

At the end of last year, President Barack Obama signed the Taxpayer Increase Prevention Act of 2014. This law will greatly affect businesses and taxpayers for the current tax year and how they measure depreciation, especially as tax season gets underway. While we previously discussed the extended deductions in some detail, more have been announced as part of the signing that have a positive impact overall on businesses. These deductions could help improve tax viability as well as planning for more spending in the 2015 tax year as a result of the savings, and proper asset accounting software will maximize potential…

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QR codes vs. barcodes: The choices in asset inventory

In fixed asset management, location and information can be very important. Determining where certain equipment is located, as well as the condition and number, can help determine whether new orders are needed to help expand the business, or if the current infrastructure is sustainable. That's why most assets have tags attached to them. By having a better idea of the inventory situation, companies can better handle their budgets for infrastructure, as well as improve recovery when dealing with incidents such as severe weather. However, there are multiple forms of tags available for asset inventory management purposes. Quite a few of them…

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