Category: Legislation and compliance

Applying generally accepted auditing standards to inventory auditors

Fixed assets should undergo audits on a regular basis. This helps ensure that inventory is consistent and secure, so that valuations are accurate for compliance with regulatory agencies, as well as during tax season. Accuracy can affect companies in numbers exceeding millions of dollars. In order to properly develop a strategy for executing audits on a regular and as-needed basis depending on the circumstances, there are people that must be hired outside the company to do this. The auditors assigned to the job should have the competency and independence to manage the job in order to successfully complete the audit…

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Gaining the upper hand in tangible property regulations

In 2013, the IRS announced new regulations regarding tangible properties. This is an important aspect when managing fixed assets, since these properties make up a significant portion of any business' current value. Understanding how these new regulations work will help companies save money through tax deductions and write-offs. The complexity of the rules can be a burden, but getting a grasp on what must be capitalized and what can be depreciated over the course of the history of the property can result in a better assessment of the company's value. This will ultimately result in significant savings overall through better asset accounting….

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Natural disasters call for the use of fixed asset accounting software

Fixed assets can suffer damage as the result of human error, but there are also situations that occur that are beyond the control of anyone. Such was the case in Detroit last month. In a single day, the metro area saw as much as 4.57 inches of rainfall, according to a report from The Detroit News. That amount was just shy of the record set 89 years ago in 1925 when the city got 4.74 inches in late July. All told, the flooding caused as much as $1.1 billion in damages, forcing the governor of Michigan to declare the city…

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The importance of removing ghost assets, calculating depreciation

Fixed asset management practices are a multi-step process with considerations that need to be taken in a number of areas. The first, and arguably the most important, is having a clear picture of all the items a company owns while also knowing their whereabouts and how they are being used. One of the biggest problems for many organizations is failing to accurately identify items that have become lost, damaged or stolen. Compounding this issue is that items that are no longer being used are still being carried on an organization's books in many instances. These materials are commonly referred to as ghost assets. Bloomberg BNA highlights…

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Rental industry expecting significant growth in the coming years

Managing physical inventories can be a daunting task for companies that use various fixed assets for business purposes. Accounting for items of different sizes – while also ensuring that they are adequately maintained – is imperative for any business to maintain a high level of operational efficiency. These fixed assets are vital to the viability of the business, heightening the importance that they are available for use when needed. In order for an asset management program to be successful, it must include a number of different elements: tracking, a depreciation calculation and accounting for amortization. All of these are components of…

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