Have a question about Asset Inventories? These past Tony’s Tips will help!
May 15, 2019
PLANNING FOR A FIXED ASSET INVENTORY
While considering completing an inventory can be a daunting tasks, by considering three simple things, you can easily get started on the right foot:
- Do you really need one done? If you are asking this question, you do!
- Assign only one individual to lead the entire project, and be sure that all instructions and expectations are in writing. You need to define what you want to accomplish and how you want it done before you even start.
- Plan on paying overtime or whatever it takes to get the project done in a week or less. The longer the inventory takes, the greater chance your data will be inaccurate, and you increase your chances of not missing assets due to disposal, displacement or disinterest!
If you can’t accomplish all of these things in-house, hire a professional to do it. Completing inventory projects successfully is just like removing a Band-Aid – focus your efforts to get it done quickly, which will minimize the immediate pain so you can get back to normal.
Let ‘er rip!
January 4, 2019
BASIC ASSET MANAGEMENT
Assuming you are reporting your income and expenses on a calendar year, it is time that you start cleaning up your fixed asset list.
Define the problem before deciding on the solution:
- Can you find all of the assets on your fixed asset listing on the floor? If not, does it matter? Why or why not?
- Are similar type fixed assets described in similar fashion?
- When you have a disposal of an asset, are you able to dispose of the child assets as well?
- Will a review of the asset list with all knowledgeable personnel accomplish what you need done?
- How much time and effort do you want to spend on this project?
Finally, you have to ask yourself this question: What do I want to accomplish with a fixed asset inventory?
Begin the process by locating two or three asset inventory specialists and request bids and referrals before deciding which firm to use. Once you decide, allow yourself one week to have available knowledgeable personnel exclusively for the project. Remember, anything over a week for an asset inventory means one of two things: there were not enough asset specialists assigned to the project, or there was not enough time spent planning the project.
Don’t wait another year! The sooner that you begin on this path, the sooner you can realize all of the benefits.
April 2, 2018
TREATMENT OF REPLACEMENT AND REPAIR PARTS IN AN ASSET INVENTORY
When conducting an asset inventory, it can be difficult to reconcile your asset list to the items on your production floor – especially when you want to apply tags to those assets, so that every asset on your list has a corresponding tag number.
Machinery and equipment tend to have a long life in production. Parts that are accessories to a machine, such as motors, vibratory bowls, and conveyors will be replaced through its productive life.
We have found it beneficial to implement a “dash 1” system to accessory parts. Once you have assigned a tag number to an asset, use that number followed by a “-1” to designate those replacement and component parts. Basically, if you assign tag #449 to a press, any replacement or repair parts will be assigned tag #449-1. Since the press would not operate without those “-1” parts, and they would not be moved from that press to another asset, there is no need to track them separately.
Simple is best!
November 3, 2017
FINDING TAX SAVINGS WITH AN ASSET INVENTORY
An often-overlooked avenue for property tax savings is an asset inventory. While the main function of an inventory is to reconcile the fixed asset listing (FAL) to the the equipment located in-house, it can also be a tax savings tool.
When identifying assets through the course of the inventory, there are invariably assets on the FAL that have been disposed of in one manner or another. Removing these “ghost assets” can result in significant tax savings.
Additionally, the asset’s current productive use can be confirmed. Most states allow for personal property to be filed as “idle” if the assets are no longer being used, such as an old press from a retired process. Idle equipment is taxed at a much lower rate than equipment being used in production.
Finally, simply reviewing the assets listed on the FAL can reveal misclassifications that affect your tax basis. If an item of real property was incorrectly included on the FAL, or if an asset was misclassified (such as computer equipment entered into the furniture/fixtures account), those errors may be identified while conducting an inventory.
Asset inventories can generally be conducted in-house over the course of a few weeks or months – but the longer the project takes, the more inaccurate the data can be. However, asset inventories can be completed in just a matter of days by contracting with an outside firm like Valu Tec, who will focus on the project specifically.
More information can be found on our website at https://valutec.com/fixed-asset-inventory/
May 5, 2017
CONDUCTING AN ASSET INVENTORY IN-HOUSE CAN COST MORE THAN IT SAVES!
Many companies try to save time and money when they decide to do an asset inventory on their own. “Why not?” they think; “our staff should know the equipment better than anyone!”
TRUE….but has anyone laid out how the project will work? Were different people assigned to different areas of the plant? If so, will they all do the job the same way? Does your staff have the time to complete the project? Who will reconcile their final work products?
There are many more questions. The question you should ask yourself is, why put myself through all of the above headaches, when you can hire a professional staff to do the job fast, efficiently, and right the first time?
So, why shouldn’t you conduct your asset inventory in house? Because it makes CENTS to have it done by experts!
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Let Valu Tec give you more FREE TIME to do what you do best, by allowing us to do what we do best!