Top 5 Reasons to Stop Using Spreadsheets for Fixed Asset Management

Spreadsheets were developed as a computerized simulation of a paper accounting worksheet. They are a wonderful tool for analyzing data in a tabular format and allow for easy manipulation of each cell in the row and column layout. Unfortunately this can lead to problems as the amount of information grows over time.

Some companies will utilize spreadsheets to track fixed assets and perform depreciation calculations. While spreadsheet can certainly perform complex calculations, they are not the best solution for asset management. Below are some of the most common problems:

Slide1

Utilizing spreadsheet software to manage fixed assets can be very time consuming to sort and search for individual asset rows. Without built in data validation for key fields it is very easy to make an entry error. Additionally, all of the different depreciation methods, first year conventions and bonus codes require complicated formulas that can be challenging to maintain. Spreadsheets easily can generate asset listings, but calculating depreciation for the current period or several periods will be much more complicated. Also, as the number of acquisitions grows, it becomes increasingly unwieldy and more difficult to track transfers, disposals and adjustments to your fixed assets.

A better approach is to select fixed asset and depreciation software that is specifically built for this complicated accounting function. Fixed asset software like Bassets eDepreciation enables much more efficient data entry with built in validation. The calculations are based on IRS regulations which ensure proper compliance and accurate numbers. Bassets eDepreciation also includes advanced reporting and export features all managed in database.

If you are curently using a spreadsheet to track your fixed assets, and are considering switching to a software solution, this white paper will greatly assist you in your analysis. http://bassets.net/docs/ROI%20Calculate.pdf

What are your thoughts on this? We invite you to respond in the space below.

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.