One method of fixed asset management is called the reduced balance method. In a straight line depreciation calculation, the rate of depreciation remains constant. In a reduced balance calculation, the rate of depreciation is high in the beginning and gradually decreases.
Understandably, this is not the most common form of fixed asset management, but [...]
Archive for the ‘Asset Management’ Category
One of the major issues affecting fixed asset management is the fact that laws change so often. Since 1981, most federal tax legislation has implemented some kind of change to fixed asset depreciation and management. The new legislation is designed to make the taxpayers life easier, but the sheer fact of changing the [...]
With the changing tax codes, configuring a normal spreadsheet program like Microsoft Excel does not work for managing fixed assets. While a macro may work for a while, it could go quickly out of date. The time spent rewriting the macro is not really worth it, especially if you can get a program [...]
In a sense all business accountants are fixed asset managers. Fixed asset management is needed for many types of industries: retail, insurance, banking, industrial, health care, and so on. Either these industries will farm out their accounting to a private CPA or have an in-house financial manager–it depends on the size of the [...]
Fixed asset accounting for the first year of an asset can be a complicated matter. Its one of the key ways that fixed asset management can be helped via a software program rather than with a hand-made macro, or even worse, using hardcopy. The time in which a fixed asset is implemented will [...]
