If you aren’t yet managing depreciation of your assets, you may be missing opportunities to lower your tax burden. You may also be missing the chance to accurately identify your company’s financial position. Fixed asset management software helps you track purchase cost, valuation, depreciation and gain or loss on your assets. Because of the complexity of the financial calculations, an automated software approach can save hours compared to manual fixed asset management.
Fixed asset software provides automation features for depreciating asset value in order to identify optimal asset management strategies and enable accurate business tax filing.
Important benefits delivered by effective fixed asset software include:
|Multiple depreciation methods||Automated calculation of asset depreciation based on customizable depreciation methods such as straight-line, declining balance, and others|
|Tax form support||Ability to create required tax forms for asset depreciation including forms 3468, 4626, 4255, 4797, 4562, and T2S8|
|Cost center assignments||Management of corporate cost codes with the ability to allocate assets to the correct department or cost code|
|Asset location tracking||Software fields for tracking asset location with check-in/check out features|
|Asset movement history||Tracking for historical asset locations and responsible party assignments|
|Bar-coding||Asset bar code labeling and scanning for quicker asset recognition|
|Asset grouping||Reporting capabilities allowing assets to be grouped by type, cost center assignment, or location|
|Asset retirement planning||Forecasting of all future costs considering maintenance and asset value depreciation in order to provide asset retirement scheduling recommendations|
|Lease vs buy analysis||Lifetime cost calculations considering asset depreciation value for providing lease versus buy recommendations|
There’s no room for error when you need a precise picture of your company’s physical assets. Knowing exactly what you have can produce significant savings in taxes and insurance costs. With fixed asset management you can dramatically reduce the time associated with tracking assets while expanding your options.
It’s an unfortunate reality that many companies overpay in taxes and insurance due to ineffectively managing their fixed assets. Using a fixed asset software application can help your firm maximize the payoff from capital investments by clearly identifying each investment, its value, location, purchase details, depreciation method and accumulated depreciation.
Calculating proper depreciation is only a starting point for today’s fixed asset management software systems. In addition, almost all of the systems compute gains and losses on the sale of assets and often provide more advanced features. The tax laws are constantly changing so access to a constantly upgraded package is important to assure you’re taking advantage of all the tax savings available to you.