Category: Legislation and compliance

Unicorns need to patent and track intangible assets

Innovation is a powerful trend in modern business. Standard practices have always given way to new ideas, but modern technology and a global culture provides platforms for small businesses to skyrocket overnight. The term unicorn is Silicon Valley jargon that describes a startup valued at more than $1 billion, according to Chicago Business Journal. The most common types of unicorns in today's world come from software, Internet and e-commerce industries. A small team of individuals may develop a new program or way of utilizing technology consumers instantly respond to. Success can happen so fast, businesses have to be careful they…

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Calculating the amortization of intangible assets

A company uses fixed assets to perform business functions. Most physical objects wear out or decay as they are utilized. The NOLO network, a legal advice resource, said intangible assets can also show depreciation. Copyrights, trademarks, patents and software may all lose value over time, and companies can apply to the IRS to deduct costs through a process called amortization, which works like depreciation for non-physical assets. To calculate the amortization of intangible assets a company needs to describe the application of the intellectual property, assign it a value and project usefulness. Records of intangible assets Whenever a company acquires…

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3 things to do after a company vehicle experiences an accident

Small and mid-sized businesses use vehicles for a variety of tasks. Companies may use transport fleets to ship goods to consumers, or offices may offer company cars to their employees. Vehicles are mobile fixed assets businesses have to supervise and take responsibility for. When a company vehicle suffers an accident, there are a variety of steps that can adjust asset inventory accounting and prevent future financial loss. Here are four actions a business must perform after an accident: 1. Analyze what happens If an employee is involved in an accident while driving a company vehicle, the police may hold the…

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Protecting your small business’ fixed assets from divorce

Small-business owners take many steps to ensure their companies can continue during times of crisis. Managers prepare their accounts and facilities for outside events like natural disasters or economic crises. Sometimes, however, the problem is internal, like when a business owner goes through a divorce. There are certain incidents where a spouse may claim business property after a marriage. Married entrepreneurs must prepare for the worse and ensure they do not lose their company's fixed assets in a divorce. Running your business separate from marriage Small-business owners do not want the courts to see the company as a marital asset. If a person…

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When to take accelerated depreciation

Depreciation allows a company to make up the cost of fixed asset wear and tear. As a company uses tools, facilities and equipment, they lose value and become obsolete. The IRS provides U.S. businesses with opportunities to recover depreciation cost at the end of the tax year. When a company takes the same depreciation expense at the end of each year, this is a fixed line schedule. Some businesses, however, prefer to use a accelerated asset depreciation schedule. This means the organization puts most of the depreciation in the asset's early years and claims the value immediately. Here are some…

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