From the December 2005 Review Fixed
Asset Management Software
As regulations regarding depreciation have become more stringent, businesses
large and small have devoted more attention to better management of these assets
and developing strategies to maximize tax benefit.
The duct tape method of constantly modifying homemade spreadsheets to accommodate
changing tax law, clients and assets is not an efficient solution. Not only
is it time consuming, it can very often result in incorrect treatment and depreciation,
possibly exposing clients to penalties. Asset management programs afford the
professional an alternative and provide a reconcilable database of all assets.
But in addition to providing automated depreciation and simultaneously managing
multiple books for assets (and being able to view multiple books at the same
time as many of these programs allow users to do), these programs offer projection
analysis, and some integrate with GL and tax software. Another key benefit of
the applications is that they aid in preparing customizable financial reports
and forms, and simplify tracking of assets at multiple locations. Higher-end
systems provide integration with barcode scanning systems for businesses with
very large asset bases.
So implement a fixed asset application, and put away the duct tape and save
it for taping ducts … or ducks.
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