Managing Your Assets Makes Sense
An often overlooked area in business is the management of physical assets. And yet in most businesses, these assets are the foundation for success and future growth.
Assets by definition are utilized by organizations to generate future cash flows. Organizations that allocate and deploy their assets effectively generally earn a higher return on those assets and improve their prospects for growth.
It’s easy to see a correlation between good management of cash and other financial assets on the returns in a business. Businesses today are also recognizing the importance of maintaining a stable, well managed pool of labor to improve performance. However, most companies spend very little time managing their physical assets once they have been purchased. They spend hours budgeting for, financing and purchasing these assets and then don’t bother to track these assets at all or at best create a list of assets in a spreadsheet for their external accountant to prepare tax returns.
It just doesn’t make sense to ignore the management of physical assets in a business. Physical assets such as computers help businesses manage their financial assets, like cash and investments and their intellectual assets such as creative ideas and management decisions. Machinery and office equipment are what people in a business use to conduct their everyday activities. Why don’t more businesses manage their physical assets?
Business Owners and Managers usually justify the lack of attention to managing physical assets on the principle of cost benefit analysis. “We don’t have enough assets to warrant an investment in a Fixed Assets software program.” Or “The cost to purchase and implement a good Fixed Asset solution is higher than the benefit we would receive.” Or “Unless the solution is tightly integrated with the rest of my accounting system, it’s too much work to set up and maintain a Fixed Asset Ledger. I’d rather use a spreadsheet.”
Thanks to a new Asset Management solution by Norming Software, the cost benefit equation for ACCPAC Advantage Series customers has been altered. Now you can purchase a comprehensive Fixed Assets Ledger that is tightly integrated with ACCPAC, has the same screens and menus and uses the same Lanpak licenses for multi-user access at no additional charge. Norming Fixed Assets is inexpensive to implement and handles all aspects of fixed asset accounting; the acquisition, depreciation, disposal and valuation (both book and tax) of all assets for the price of an Enterprise Edition module.
Norming Asset Accounting is written with ACCPAC’s Software Development Kit (SDK) so it runs in the ACCPAC Desktop, looks just like an ACCPAC module and uses the same Common and Administrative Services that all other ACCPAC modules use. Therefore, it is easy to learn and use for those people already familiar with ACCPAC. It also supports all database options (Pervasive, SQL, DB2 and Oracle) and uses Crystal Reports as the standard report writer.
The strength of Norming’s Asset Accounting solution is its flexibility. It allows any depreciation calculation method (including US MACRS or CDN CCA) to be used through a user-defined formula based depreciation schedule. Depreciation expense can be projected for future periods and you can choose which periods in your fiscal calendar you want to depreciate an asset.
Asset ID’s can be changed at any time and all history will be assigned to the new number. The Adjustment Entry function allows assets to be re-valued for either book or tax purposes, depreciation rates or methods to be changed, assets to be transferred between locations and many other features.
Norming Asset Accounting integrates directly with Accounts Payable (and Purchase Orders if installed) for asset acquisitions, with Accounts Receivable for asset disposals and General Ledger for reporting and analysis. Drilldown can be accomplished from the GL to AR and AP and then into the Asset Accounting module.
Norming Asset Accounting is the foundation of a 4 module solution which also includes Asset Maintenance, Asset Leasing and Asset Tracking. For businesses who recognize the importance of managing their physical assets and want a tightly integrated, cost effective solution to complement their existing ACCPAC Advantage Series system, Norming Asset Management makes a lot of sense.