When you first launched your small business, almost all of your focus was on increasing the turnover of your current assets. You had a product and you wanted to sell it. Now, as your business has begun to grow, you find yourself making long-term investments in fixed assets. Making value determinations on these fixed assets can be much more complicated than valuing your current assets.
This really comes to a head when you are trying to figure out if making a fixed asset purchase is going to pay 
off, and if so, in what kind of time frame. There is no way to do that effectively without having a system in place that allows you to value your fixed assets and measure your return on investment (ROI) over time.
Sage ERP Gives You the Tools to Handle Your Fixed Assets
If you want your business to grow, you are going to have to invest in fixed assets, but bad investments can quickly deplete your capital and kill your business. With Sage ERP, you’ll be able to analyze and track the factors that affect the value of your fixed assets, such as:
- Useful Life: How long do you expect a fixed asset to continue providing a benefit to your company? When compared with other factors is the useful life of the asset long enough to make up for its cost?
- Depreciation: The number of fixed assets that don’t depreciate over time is very low. Sage ERP will help you measure the rate of depreciation against other factors to decide if the asset is a good investment.
- Rate of ROI: How quickly will the investment recoup its original costs? If this can't happen at a quickly enough, it will tie up too much of your useable capital and starve out the other parts of your business that need funding.
For more information on how fixed asset accounting with Sage ERP can help your business make smart long term investments, contact Oates & Company today for a personal consultation.
