27

Sep

Are Your Fixed Assets Audit Ready?

While on site last week performing fixed asset consulting and data work, my client had encountered last-minute auditors. Not just one, but three (3) from different places. Funny thing was, they were keeping their fixed asset listings and their CIP (construction in progress) accounting assets in the same spreadsheet. Boy, was it a long one with filters and pivot tables, etc.

During the first day of my stay, I uploaded their fixed asset records into FAS Asset Accounting, ran some preliminary depreciation to balance back to FY 2010. In a matter of hours I was able to prepare a report in 3 different formats and export out to a PDF for the corporate Controller. At the end we noticed about a $95K difference in depreciation – in their favor!

The next day the Auditors were in and out of the Controllers office asking all about fixed assets and their current schedule and if they could get a listing sorted by asset class / asset type with sub-totals by location. With their current “system” (aka: spreadsheets and SAP fixed assets), they couldn’t get this or make this readily available. However, with Sage FAS Asset Accounting they were able to very quickly.

Thank goodness they had a fixed asset Consultant on deck that week. Next time they have an unexpected / unanticipated audit (they thought they had until December), they will be even more ready with CIP reports as well. So the question is… are YOU and YOUR fixed assets audit ready?

13 years ago Short URL 2 Comments

Fixed Asset Management FAQ/Sage FAS Fixed Assets

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09

Aug

Fixed Asset Inventory and Disaster Recovery

Insuring your fixed assets is useless if you aren’t prepared to substantiate your cliams when your worst nightmares come true.  Does your recovery plan include YOUR valuable fixed assets?

Del Papa Distributing is celebrating 100 years distributing fine beer and beverages across 17 counties in Texas. The company sells more than 10 million cases each year from three distribution centers and employs more than 340 individuals. To ensure its numerous assets are efficiently tracked and accurately accounted for, Del Papa Distributing relies on Sage FAS Fixed Assets software and Paragon Systems. Recently, the company sought to better control its assets through a barcode system, and contacted Paragon Systems, a Sage business partner specializing in the implementation of asset management and asset inventory applications.

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“We have a large number of assets throughout the company and tracking them by barcode makes good business sense,” says Crystal Bryan, director of accounting services for Del Papa Distributing.

“Barcoding speeds the count of assets and the simple presence of an asset tag on a piece of equipment lets people know an asset is being tracked,” Bryan explains. “We looked at several other asset tracking systems, but selected FAS Asset Inventory for its capabilities and also because it integrates with our existing asset accounting software. The integration helps us to maximize our overall investment in technology.

How did we (Paragon Systems) help Del Papa get back on track?  What should you be thinking of?  Read the full article…. Fixed Asset Inventory and Disaster Recovery

13 years ago Short URL Comments

Fixed Asset Inventories/Sage FAS Fixed Assets

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05

Aug

Top 5 Ways To Find Money Through Fixed Assets

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

  1. 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.
  2.  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.).
  3. 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?
  4. Asset Appraisals – is it really worth TODAY what it once was?  Probably not.
  5. 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.

 

 

13 years ago Short URL 3 Comments

Cost Segregation and Valuation/Fixed Asset Inventories/Fixed Asset Management FAQ/Sage FAS Fixed Assets

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12

Apr

SAP to FAS Asset Accounting: Live Update 7

Coming down the home stretch… We are now finalizing the 4562 balances of all six companies!  Guess what happened along the way? 

Through data mining and going through their data output with a fine tooth comb, we discovered millions of dollars worth of discrepancies, for bonus depreciation and mis-appropriated adjustements — in their favor!  What a fun day that was!  As I anticipated, our project has already paid for itself 20 times over and we are 70% finished.  Which leaves a good 30% left for more positive outcomes!

Wow… moving federal tax depreciation and state calculations out of a monster system such as SAP (or any ERP solution) – including to a ton of off-line spreadsheet adjustments, you might actually benefit more than you think!  So… why is it again YOU aren’t making the switch to Sage FAS?  Yes, I know… good question!

Next step in this process, agreeing to State balances and working out Quarterly updates.

13 years ago Short URL Comments

Fixed Asset Management FAQ/Sage FAS Fixed Assets

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12

Mar

Fixed Asset Software: More Ways to Capture ROI

Did you know there are MANY uses for a fixed asset solution?  Yes, other than just depreciating on capitalized assets.

Ways to increase your internal return on investment on an automated fixed asset software solution:

  • Depreciation: Get out of those multi level, multi workbooks and most of all multi calculation – formula driven errors!
  • Tax Compliance: Keeping up to date on federal tax depreciation rules and bonus depreciation calculations.
  • Sales Tax: Tracking sales tax amounts for Sales Tax reporting and state audits.
  • Property Tax Reporting: Keep track of expensed items in the same place.  You can group your assets together by “capitalized or expensed” for additional property reporting.
  • Paper Trails: for adjustment and balancing audits, disposal, transfers, impairments, etc.
  • Paperless: you can scan take photos and attach those to the assets (capitalized or expensed) in the same system!  Whoa!

All of this and more can be captured, performed and tracked in ONE system – not multiple places.  After all this… I am pretty sure the cost of a fixed asset depreciation system will pay for itself the very first day you get your data in it!

White Paper: Email me to read more about Maximizing your ROI with a Fixed Asset Management Solution.  Subject: Crazy White Paper.

13 years ago Short URL 3 Comments

Fixed Asset Management FAQ/Sage FAS Fixed Assets

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11

Sep

14 Reasons NOT to Use a Spreadsheet for Depreciation

There are many reasons why spreadsheets are not the “go to” for all business needs… especially when it comes to running and keeping track of fixed asset depreciation.  With so many potential causes and opportunities for errors, companies must look to software solutions that are specifically designed to automate, report and eliminate errors to critical financial data.

Here are the Top 14 Reasons why spreadsheets fall short:

  1. No pre-development design
  2. A spreadsheet’s purpose often not documented
  3. Meaningless cell references
  4. Dependencies are difficult to see
  5. Formulas are created manually
  6. “Sort” of confusing
  7. Formulas in every cell
  8. No version controls
  9. No audit trails
  10. Inconsistent data entry
  11. Security concerns
  12. Fraud
  13. Reporting deficiencies
  14. Changing a worksheet can be difficult

While spreadsheets can offer assistance in important parts of business operations, it is clear that it cannot perform all tasks businesses face for fixed asset management.  It’s important that your fixed assets are not overlooked – instead they should be properly recorded, calculated and tracked.

Fun Fact (I love these): 30% to 90% of all spreadsheets suffer from at least one major user error.

15 years ago Short URL 5 Comments

Fixed Asset Management FAQ

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