Recent Articles

Current versus fixed assets

Growing companies will often be in the position to implement fixed asset management. However, there are many confusing aspects to this practice. Assets are generally referred to as property that a company owns, so what's the difference between fixed assets and current assets? Current assets are also known as short-term assets, which means they can be converted into cash within a fiscal year. In general, current assets are inventory the business intends to sell for profit. However, according to Morning Star, current assets may also refer to investments and accounts receivable. Prepaid expenses also count as current assets. In contrast, fixed…

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Memorial Day flooding causes damage to public assets in Texas

Over Memorial Day weekend, extreme flooding in the central Texas area caused damage to business, personal and government fixed assets. The Austin American-Statesman calculated the damage to public property to be worth more than $80 million, including roads, bridges and dams. Many people across Texas have already registered with the Federal Emergency Management Agency to receive assistance. In addition, FEMA will host meetings to provide residents with information on how to obtain help from the government. Hay's County was hit the hardest by the flooding. In this area, the Statesman estimated $33 million worth of damage to public fixed assets….

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Calculating fixed asset turnover rate

Fixed asset management software helps companies with the ins and outs of fixed asset accounting. For instance, fixed asset turnover refers to how effectively a company is using its property to generate revenue. In short, fixed asset turnover demonstrates how effectively a company is using its fixed assets overall. Businesses can calculate this number by dividing net revenue by average fixed assets. Why does it matter?  Fixed assets represent a significant investment and businesses want to make sure they are making the most of their investment. The equipment a business buys needs to contribute to overall revenue. Calculating fixed asset turnover ratio…

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Fixed asset management helps growing businesses

There comes a point when small businesses need to consider fixed asset accounting practices. Once a business expands, it will likely need to acquire more fixed assets in various locations. Fixed asset accounting can help companies keep track of their fixed assets, remain compliant, and ensure their property taxes remain as low as possible. The goal of most businesses is to expand because it leads to higher revenue. However, companies need to be careful not to grow too quickly. There are many expenses associated with a larger business. The company will need to acquire more fixed assets in terms of…

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Manage fixed assets that are under construction

When it comes to fixed asset management, most business think in terms of acquiring property, depreciating and retiring it, but this isn't always how the lifecycle of a fixed asset works. For instance, how can businesses start planning for a fixed asset before it even becomes a fixed asset? Many companies end up in the situation where they are in the process of constructing an asset that will go on the books. Fixed asset management software allows companies to track the progress of fixed assets while they are still becoming completed. Some assets take a significant amount of time to…

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