Category: Fixed assets for SMB

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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The importance of audit trails

Fixed assets are often a key component in any company's accounting books. Without having accurate information on these critical items, the end result is that businesses fail to adequately assess the value of the company, which can in turn cause mistakes in tax returns. There is a necessity to properly record the acquisition, use and disposal of assets in a firm, as well as any changes in value that can occur in between. Still, there are certain things that a business may feel is perfectly acceptable will turn up red flags by the IRS, triggering an audit. Having a proper…

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Understanding investment property depreciation

For many businesses, the most important fixed assets that they can have are the properties they own. This is especially the case with property management and real estate companies that lease out office space or apartments to others. These holdings require significant upkeep, since they are highly valued by the leaseholders. Properly assessing these spaces are necessary to establish a property owner's income during tax season. This is especially true when it comes time to calculate depreciation that will then be used to make a deduction. While utilizing asset accounting software can help establish these values, it's important to know…

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Warren Township fired department replacing damaged fixed assets

Protecting fixed assets needed for business purposes should be a top priority for any organization. Without these tools, it can be virtually impossible to accomplish tasks and meet goals. As a result, having an asset management program in place is a sound strategy for any entity that relies on certain tools in order to get things done. According to a C&G Newspapers report, Warren Township, located in suburban Detroit, is still reeling from a major flood that caused millions of dollars in damage to commercial, public and private property. The Warren Fire Department lost critical emergency management tools needed to…

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