Streamline the Complicated Task of Fixed Assets Depreciation

By August 4, 2017Asset Tracking, Blog

Streamline the Complicated Task of Fixed Assets Depreciation

Fixed assets depreciation requires an accurate and precise means of tracking. If you’ve got fixed assets (and nearly every company or organization does), depreciation must be reported for accounting and compliance purposes. Those values determine your tax liability and your reported net income.

Depreciation is defined as the systematic reduction of the recorded cost of a fixed asset. Fixed assets can include IT equipment, furniture, buildings, etc. Three factors to consider when you calculate depreciation are:

Useful life: This is the time period over which you expect that the fixed asset will be productive, or useful. If it’s not cost-effective for you to continue using that asset, you’ve officially moved beyond its useful life and would then dispose of it.

Salvage value: You take this factor into consideration when disposing of an asset that has moved beyond its useful life. From time to time, you might be able to sell the asset for a reduced figure, which is called the salvage value. Your depreciation is calculated from the asset cost minus the salvage value.

Depreciation method: You have some options here. Either calculate depreciation expense using an accelerated method, or calculate it over the lifespan of the asset. An accelerated method allows you to take more depreciation early in the lifespan of the asset, which delays some of your tax liability. Calculating depreciation over the entire lifespan allows for simpler calculation. The most common way to show steady depreciation is via the straight-line method.

To do these calculations yourself, you’ve got to know a thing or two about tax laws and accounting. Most of us don’t have that expertise. It’s a rather complicated exercise, and if you’re managing multiple fixed assets across your organization, well, it’s enough to make your head hurt.

Asset Panda takes this task off your hands. And fixed assets depreciation is only the beginning.

Our free mobile iOS and Android apps sync with the cloud, so your data is served up in real time 24 hours a day. Work isn’t limited to the hours of 9 to 5 anymore; you should able to access your information anytime you need it. With Asset Panda, all you need to track and monitor the complete life cycles of any of your fixed assets are the smartphones and tablets you and your employees already carry. You won’t need a handheld barcode scanner – the app includes a mobile scanner. From the palm of your hand, pull up an item’s exact location, including GPS coordinates; its check-in/check-out status; insurance policy; warranty information; lease/purchase information; complete maintenance history; and, of course, depreciation, among other data.

Every Asset Panda account is a premium account, so you get full access to our entire features offering. Features are completely customizable, so you can track your assets any way you want, and make changes as you see fit. Asset Panda is also flexible enough to incorporate new technologies as they become available in the future. We’re constantly researching, innovating and updating our mobile platform so it remains the most powerful, yet simple to use asset tracking tool in the world. Your employees won’t need any special training to master it, and you’re entitled to an unlimited number of users, which allows you to close the loop among all of your stakeholders.

With Asset Panda, you can rest easy knowing that your fixed assets depreciation is accurate, and thanks to the cloud, timely. This incredible tool eliminates guesswork and error and allows you to make informed decisions about your investments. It’s a no-brainer that will streamline your operations and save you measurable time and money. Try Asset Panda free for 14 days. For more information or to get started, go to assetpanda.com

 

CONTACT US

GUIDED TRIAL

PRICE QUOTE

Start your FREE 14-Day Guided Trial today!

Sign up for your FREE Guided Trial
best live chat