How to Leverage a Cloud-Based ERP System to Track and Monitor Fixed Assets
February 28, 2019
Is your company stuck using old habits (like lengthy Excel spreadsheets) for tracking fixed assets? If so, it’s time to consider a more efficient tracking method—utilizing an automated software system that can produce quick and reliable results—that gets you away from antiquated desktop software versions. During the year-end close process, tracking fixed assets and compiling depreciation schedules should not be a worry on your list. The rolling use of a fixed asset tracking software year will reduce time, improve results, and reduce stress levels as you close the books.
Tracking fixed assets the old-fashioned way can cause lost or incorrect documents and miscalculations that might lead to missed opportunities in tax savings. Alternatively, tracking and managing fixed assets within a cloud-based software system leaves a visible and reliable reporting trail. It is essential for a system to be applied for monitoring assets and producing depreciation schedules that provides confidence in your record keeping, strategic planning for future investments and no surprises when filing your taxes. Reducing time requirements during a busy time of year can be achieved by utilizing fixed asset software to eliminate obstacles when reviewing your fixed assets and depreciation schedules.
Here are a few of the critical advantages of a cloud-based fixed-asset management software like Sage Intacct:
Create Accurate Records
On the acquisition of the fixed asset, determining the useful life, location of deployment, and type of depreciation are a few of the necessary actions to take for both GAAP/financial accounting standards and tax reporting. Additionally, upon impairment or disposal of a fixed asset, factors such as the date of disposal and the amount of salvage value and potential sales proceeds must be analyzed. Overlooking or mis-reporting vital information can lead to future problems when preparing taxes and recording depreciation.
Free Your Schedule
Tracking and creating manual depreciation entries is cumbersome. This inefficient process of inputting information could be streamlined by utilizing software that allows for automation and integration. Once a fixed asset module is implemented, tracking and recording fixed assets becomes much more manageable. The monthly depreciation schedules and preparation of journal entries could be automatically generated with predetermined drop-down options to select exactly what needs to be tracked to meet a company’s needs. This immediate reporting will allow staff to focus their time on other value-adding activities.
Maximizing fixed asset potential for a company is simple when the asset valuation is visible in a concisely compiled report. Being able to see the fixed assets held by thFree e company, their ages and the related costs helps enable the decision makers in a company in evaluating the need for additional capital investment opportunities.
SC&H recognizes the need for automated record-keeping and recommends a dynamic software system for your growing company. It is important to timely and accurately record your fixed asset information and input the relevant detail. An integrated system will enable this by configuring customized depreciation schedules and journal entries with a streamlined approval process to decrease the potential for error. Assessing fixed assets within your company is much easier when information is accurate, timely, visible, and accessible. Developing customized inputs and formats, will result in accurate reporting that supports your business’s reporting needs.
We welcome the opportunity to help your business with our expert outsourced accounting services—please reach out to one of our team members today.