4 Reasons Why Fixed Asset Management Saves Tax Dollars
It’s tough for corporations to get all those moving parts working together as a whole. The administrative side tends to disconnect from the execution / distribution side in the incongruous day-to-day frenzy of business operations. So just how do you get all sides speaking the same language when it comes to managing company assets? Fixed asset management software. Having the right asset management software can pay huge dividends, especially when tax season rolls around. With death and taxes said to be two of life’s most reliable certainties, we’ve got four reasons why fixed asset management can help minimize your accountants’ stress at tax time.
- Calculate depreciation – Calculating asset depreciation is one of the biggest headaches at year-end. Implementing fixed asset management software guarantees an accurate accounting of all the depreciation variables you’ve entered throughout the year. Yeah, that sound you just heard was a collective sigh of relief from your accounting department.
- Streamlining – Centralizing all asset information makes for consistent data and quick results. When employees across an entire corporation use the same asset management software, it creates a level of visibility that cannot be attained through separate, manual record-keeping.
- Deductions – We’re all aware the human mind is capable of failure…and of missing out on important deductions without assembled data and reminders in place to catch mistakes. Using the right asset management solution makes it far less likely that you’ll miss those deductions at tax time.
- Off the books – Ever heard of ghost assets? They’re pretty scary, but mostly because of the tax and insurance liabilities they represent. Fixed asset management software helps track down anomalies and allows you to modify the books, tax data and insurance as necessary.
Tax time is the right time to take stock of all that you have and all that you have done throughout the year. Asset management software keeps you in the loop about the location, status and value of everything you own, while providing a centralized, company-wide data repository and a means to save time and money. It may be a certainty that tax time will come around again, but with the right solution in place, you’re just as certain to be prepared to maximize your tax savings.