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.
Topics: oates, Sage, fixed assets, sage fas, john shepperson, oates co, small business
At first glance, keeping track of the value of your company's fixed assets looks like a simple task. Dig a little deeper, however, over a longer period of time, and you will notice how much your fixed asset values fluctuate. There are a host of factors that contribute to this fluctuation, and you’ll see that sometimes they’re a bit arbitrary – no two categories of assets depreciates at the same rate and even assets in the same categories can depreciate at different rates.
To simplify th
e process of fixed asset valuation, many managers think about assets as having a life cycle, much like that of a frog or a fish. Just like animals have unique life cycles that are shaped by their environments, assets have unique patterns of value and depreciation that are also shaped by their environments.
Topics: Sage, depreciation calculations, fixed assets, sage fas, john shepperson, oates co, life cycle, asset valuation
Your fixed assets – machinery, chairs, computers, software, and even buildings and land – are things you use every day and barely notice, but without which your business couldn’t operate. They are investments in your vision, in your people, and in your bottom line. That investment costs money and maximizing return on that investment is just as important as producing a good product.
How do you maximize a return on fixed assets? You already know that fixed assets have a life cycle, especially in the tax world. Managing that life cycle is integral to keeping your assets paying you instead of repeatedly paying for them.
Topics: Sage, Fixed Asset, fixed assets, sage fas, fa, john shepperson
