Category: Fixed assets for SMB

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…

Read More

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…

Read More

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,…

Read More

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…

Read More

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…

Read More