Category: Legislation and compliance

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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Reasons to implement an asset management program

Organizations need to ensure they are compliant with tax code changes made by the Internal Revenue Service regarding fixed assets. Enacted on January 1 of this year, the new rules focus primarily on repair of material investments and the appropriate deductions that are allowed by the organization. This was done to create a set of uniform and consistent guidelines for compliance that all owners of fixed assets can follow to ensure that they are operating within the established laws governing deductions for items used in business functions. The new policies instituted by the IRS are a good reason for a company to have an asset management…

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The benefits of standalone asset management software

A recent report from the South Jersey Times revealed that the city council in Vineland, New Jersey passed a proposal allowing the city to spend $4.8 million to improve many of its vital fixed assets. The funds were secured through a bond ordinance and the measure was passed unanimously by the city council, 4-0. "It's a great thing because, unfortunately, in many areas our vehicles have been depleted, buildings have been run down, and this is a move to make capital improvements to have our police in safe cars, have our firemen in safe fire engines and have our EMTs…

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