Manually entering fixed assets can be a tedious process prone to entry errors, but it does not have to be this way. Fixed asset software with integrated user defined business rules can greatly simplify the entry of individual records while ensuring consistency in your depreciation calculations. Catching entry errors in an audit can be difficult to correct so plan accordingly to establish clear data entry procedures for all of your users.
Bassets eDepreciation includes business rules that can be driven by either General Ledger or Asset Class codes. During data entry a look up based on the selected asset class will determine the correct:
- depreciation method
- first year convention
- recovery period
- property type
- listed property code
- bonus depreciation code
This intelligent look up will also find the associated accumulated depreciation and expense general ledger codes and then populate the corresponding fields on the fixed asset maintenance form as shown below:
The business rules can be setup to default the asset properties as well as the depreciation parameters for each of your schedules including Tax, Book, State and AMT. A little planning up front can really ease the burden on your asset administrator and allow your entry personnel to focus on four critical elements of fixed asset entry:
- Purchase Price
- Acquisition Date
- General Ledger or Asset Class code
Entering these four asset properties along with the business rules will not only reduce the time spent on fixed asset entry but will also ensure consistency and proper compliance to tax code. When evaluating fixed asset solutions be sure to look for this type of functionality to simplify the data entry of individual asset records and improve the overall quality of your entire database.
For further information, here are some links to earlier Depreciation Guru posts:
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More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.