Wow… today the stock market crashed so big it has probably got us all thinking… where do we go from here? Which also gets me thinking — how can businesses find some cash flow so they have some “rainy day funds” (or for operating expenses) in their back pockets? Then it dawned on me… if they manage their fixed assets properly and received detailed cost segregation studies or had a proper 3115 study done, then shoot, EVERYONE could have extra cash flow.
If you think about it, there really are many ways to capture extra cash flow through fixed assets. From very small efforts to large.
Top 5 Ways Fixed Assets Can Capture or Re-capture Cash Flow
- Cost Segregation Studies – extra Tax Deductions with properly classified fixed assets. Money is in the DETAILS, not in bulked entries everyone! Make sure you capture your 100% bonus depreciation for 2011 – it will go away soon.
- Rev Proc 2007-16 Study – 3115 assets; allows taxpayers to change their method of accounting and claim the allowable depreciation (or amortization) amount they never claimed (i.e. bonus depreciation, etc.).
- Physical Fixed Asset Inventories – cost savings all across the board with Property Taxes, Insurance Premiums, Financial savings impact and more. Have you ever done one of these before?
- Asset Appraisals – is it really worth TODAY what it once was? Probably not.
- Automated Depreciation System – if you are still stuck in spreadsheet land for calculations, believe me when I say, YES you ARE missing additional expense and bonus that you are entitled to. I see it every time I open someones spreadsheet! Doesn’t matter the size of the organization or spreadsheet, there is ALWAYS calculation error, sometimes in the millions.
Which industries would benefit from these services / studies? Just about all industries, well, maybe government and non-profit wouldn’t benefit from all five, but certainly from a couple. Industries that would uncover a ton (always in the thousands – sometimes millions) from one or all five: hospitality, data centers, banks, manufacturing, retail, healthcare to name a few.
Now I know why I love waking up every day to go to work for the past 14 years (and growing)… because everything I (and my associates) do each and everyday help people and their businesses grow. Who doesn’t like that? Probably the same people who don’t like furry fuzzy kittens.