Fixed Assets and Taxes – Improve and Pay Less

Managing your fixed assets can assist in freeing up some serious cash flow if done properly.  And everyone is looking for a little extra cash these days.  If your fixed asset manager is actually ‘owning’ their job, then maybe you are already resting nicely and benefiting from your extra cash.

Ways to improve your fixed asset schedules to capture tax savings and benefits:

  • Classify your fixed asset property type correctly: Real versus Personal.  A Cost Segregation Study is an EXCELLENT service to make sure you are doing just that.
  • Utilize all the Bonus Depreciation available if and when necessary.  Again, ensuring you are classifying your property correctly can help you gain additional bonus you may not be aware you had.
  • Perform a physical audit of your fixed assets.  Conducting a physical fixed asset inventory allows you to reconcile back to your balance sheet to write off those items that no longer exist.  Especially those with a netbook value!
  • Update your insurance!  After completing a physical asset inventory of your assets, revisit your insurance to see if you are overpaying (or even underpaying, should something happen).
  • Also after performing a physical inventory, you may be able to reduce your property taxes!  Maybe even think about getting a property valuation study — these days, property is worth less than it once was.  An official study could do just that…  reduce your property taxes.

There are many ways to better your workflow of your fixed assets.  The ones I share with you today, are the key ingredients to a successful, yet rewarding way to release some cash flow into your bottom line.  Who wouldn’t want some extra cash to increase business, hire another employee, provide raises to those who work more than a couple jobs within your organization!? 

Fun Fact: Recently, we have captured millions of dollars in cash flow through our physical asset inventories and cost segregation studies.  Our clients will be able to use these credits towards their Q1 2010 Tax Estimates.  Yee haa!

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