Recent Articles

Insuring property with the help of fixed asset management

Climate change could raise the cost of insurance for business property, making proper fixed asset management even more important in the coming years. Fixed asset management isn't just vital for accounting, but also for insurance purposes. Businesses need to insure their property in case of a disaster. Otherwise, an unexpected event could cause them to close their doors for good. Weather-related incidents rise A report from the American Academy of Actuaries found incidences of severe weather events have increased over the years. In North America, the number of losses related to weather has increased by a factor of five, according…

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Michigan proposes GPS tracking for vehicle fixed assets

Asset management of fleet vehicles can be especially challenging given that drivers are mobile and not always on site. As a result, it can difficult to hold staff accountable for their actions while on the road. This is why the state of Michigan may pass a bill to track Michigan's vehicles using GPS devices. According to CBS Detroit, the new bill would introduce a pilot program to follow the movements of a small number of vehicles. For the duration of one year, Michigan would track 120 vehicles. Pending the performance of the pilot, the program may be rolled out to all 2,600 vehicles as well…

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What’s the difference between depreciation and amortization?

In fixed asset management, it's important to determine the difference between amortization and depreciation and when to use which strategy. The answer is relatively simple. Both approaches are used to spread the cost of a fixed asset over its useful life rather than accounting for its value all at once, according to Accounting Tools. Depreciation is used for tangible assets, while amortization is used for intangible assets. Depreciation When accounting for a tangible fixed asset, companies use depreciation to determine its value over time. Tangible fixed assets, like vehicles, become less valuable over time because they are subject to wear and…

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New Zealand city considers selling fixed assets to finance rebuild

Christchurch, New Zealand, facing a rebuild after earthquakes, may use fixed assets to obtain necessary funds. Cities affected by natural disasters often face decimation of fixed assets, such as property, buildings and vehicles. In these events, cities fare better when they have an accurate fixed asset management process to determine what property has been damaged and what remains. Having a register of fixed assets gives cities a better starting point during the rebuilding process. Earthquakes in Christchurch Christchurch, New Zealand, suffered a series of earthquakes in 2011, The Guardian reported. The strongest of these earthquakes occurred on Feb. 22, 2011,…

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Oregon lacks fixed asset program for surplus land

An audit in Portland, Oregon, revealed the city does not have an effective strategy for managing its fixed assets, especially its properties, Portland CBS affiliate KOIN reported. Better fixed asset management processes would better enable the city to deal with this land. City Auditor Mary Hull Caballero determined the city lacks a comprehensive strategy to identify surplus property and sell it, the Portland Tribune wrote. Oregon state law has no regulation as to identify surplus property and very little information about how to sell land. In addition, Portland doesn't have any instructions on how various bureaus should accomplish land sales. Since state law…

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