Is your accounting software sabotaging your small business by not enabling you to take care of its fixed assets? Yes, it happens. Some accounting solutions do not come with functionality to cover business fixed assets. And, it creates ghost properties or items in your inventory.
The situation leaves owners clueless about how to account for the investment they have made into the fixed assets. It has all the potential to explode into your face and cause you to lose face and brand image.
Bring Accuracy to Financial Reporting & Depreciation Calculations
The management of fixed assets takes time. And you have to get it right. The right online accounting software can assist you in prompt tracking of these assets and solving the problem. Accounting software assists you in precise depreciation calculations and financial reporting. Online accounting software assists you in being compliant with the regulations in force. Most importantly, with the correct calculations to back you, you can confidently pay the right property taxes, insurance, and claim tax savings that are rightfully yours.
As you can see, calculating fixed assets depreciation precisely can save you a tonne of money. However, complying with the reporting requirements also matters. The governments all over the world have tightened these requirements and expect you to install effective internal controls.
Non-compliance, in any form, is not excused. This is an area where implementing online accounting software serves you right. It enables you to record your business’ fixed assets correctly. The all the information about the digitized records is stored in the central database maintained by the software.
These financial records of your business can be accessed and verified by the external auditors as is mandatory by the law. The right accounting software gives owners, directors, managers, creditors, and donors a deep insight into the business’ financial status.
Automate Tracking of Fixed Assets, Expenses, & Income of Your Business
Many a time, inventory reports cause confusion among company employees. These reports contain references to ghost assets. These are listed as active or available. In reality, they are not accessible. These assets are either stolen, lost, or unusable.
As a consequence, your business needs to pay higher taxes, property taxes, and steep insurance rates based on a percentage of current fixed assets. Not being prompt in removing these assets from your inventory can bleed your business. With online accounting software, you can ensure that there are no ghost assets in your inventory.
Online accounting software assists you in:
- Managing entire life-cycle of fixed assets (acquisition to disposal)
- Take physical inventory of your fixed assets
- Controlling fixed assets through capital budgeting
- Preparing management reports for monitoring and for making business decisions
Yes, your online accounting software for small business can help you competently in taking care of your fixed assets. The software brings discipline to the process and optimizes your spending on insurance, taxes, and business expenses.