Recent Articles

Developing more best practices for fixed asset management

Fixed assets aren't something a business should take lightly. While they may not produce anything on their own, the properties, equipment and supplies that are considered assets are what determines the worth and value of a given company. This can be important in financial situations such as buyouts, tax seasons or other events that require such an assessment. More importantly, they allow operations to function normally, no matter the location or the size. Proper fixed asset management will allow companies to maintain better control of their finances and productivity, which will help enable greater efficiency and profitability. Understanding the best…

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

Understanding investment property depreciation

For many businesses, the most important fixed assets that they can have are the properties they own. This is especially the case with property management and real estate companies that lease out office space or apartments to others. These holdings require significant upkeep, since they are highly valued by the leaseholders. Properly assessing these spaces are necessary to establish a property owner's income during tax season. This is especially true when it comes time to calculate depreciation that will then be used to make a deduction. While utilizing asset accounting software can help establish these values, it's important to know…

Read More

Small businesses spared from repair regulations

In fixed asset accounting, getting the best value of all the properties a company possesses may mean that methods can and should change on an as-needed basis. However, this method often results in filing extra paperwork for the purpose of staying on an even level with the IRS. That can pose as a challenge for many small businesses, since that requires extra time and more money spent dealing with accounting, all the while increasing the risk of mistakes. That is why recent adjustments on tangible properties have made it easier for companies to make changes to their accounting without having to risk…

Read More