Category: Legislation and compliance

The value of asset inventory software in surplus computer sales

While it may not be commonly known, federal and state government agencies are in the business of selling surplus items that many people use on a daily basis. From homes and automobiles to computers and other electronic equipment, many of these goods can be purchased at very low, discounted prices and represent cost savings for consumers and businesses, as well as revenue generators for governments at the federal, state and even local levels. For example, USA.gov offers many items that can be purchased via auction from both federal and state agencies. The website features products used by the military, heavy machinery most commonly found…

Read More

Major Change to GAAP Accounting for Leases

Consider an airline that doesn’t own any of the airplanes it uses because it leases them instead. Under current reporting rules on GAAP accounting for leases, that airline may not show any airplanes on its balance sheet, nor does it show any liabilities for the company’s future lease commitments. A prospective investor looking at the airline’s financial statements would, therefore, have no idea of the value of the right to use the planes nor would it know anything about the obligations the company has incurred for future lease payments. While many have thought that the rules for accounting for leases…

Read More

What To Do If….

Isn’t it best to always be prepared? Then when you encounter a situation, you’ll know what your options are and can make a better choice. This is especially true when it comes to your taxes. For example, every so often you run into a predicament where two different IRS code sections collide and you don’t know how they interact with each other. At other times you could be confronted with a particularly onerous tax provision that you want to avoid. The following demonstrates a few of these situations and answers to your biggest fixed asset questions: What to do if….. an Asset Qualifies…

Read More

Depreciation Calculations Under GAAP – Four Factors

Depreciation refers to how the costs of owning and maintaining fixed assets evolve over time. Equipment, vehicles, facilities, electronics, furniture and other tangible items owned by businesses wear out over time and eventually become obsolete. Because property depreciation can serve as a tax deduction for corporations and small-business owners alike, it’s essential for company leaders  to rely on the right tools to ensure accurate property accounting. Fixed asset management software can help firms of all sizes effectively track the book value of items to ensure organizations are compliant and acquiring the tax breaks they’re entitled to. While solutions providers can work…

Read More

Four main depreciation methods

Fixed assets are a major expense for companies in all industries, and especially so for those in manufacturing. One of the best ways to maintain efficiency, gain a return on investments made in equipment and tools, and minimize unnecessary spending is to accurately track items’ depreciation.  Depreciation refers to the change in a fixed asset’s value over time or based on use. The value of nearly everything owned by a company depreciates, including machinery, computers, vehicles and furniture. While land doesn’t necessarily lose value, buildings and fixtures placed on property depreciate. When organizations collect information to compose financial statements, there…

Read More