{"id":98,"date":"2019-12-20T04:18:12","date_gmt":"2019-12-20T04:18:12","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=98"},"modified":"2019-12-23T04:19:10","modified_gmt":"2019-12-23T04:19:10","slug":"the-management-of-fixed-assets-a-very-valuable-source-of-information","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/the-management-of-fixed-assets-a-very-valuable-source-of-information\/","title":{"rendered":"The Management Of Fixed Assets, A Very Valuable Source Of Information"},"content":{"rendered":"\n

The fixed assets that are part of the\nassets of a company, those assets that cannot be converted into liquid in the\nshort term but that are normally necessary for the operation, say\n“normal” of the company, provide very valuable information about the\nstate general of it. Its optimal management will allow, not only to comply with\nlegal requirements but to obtain very profitable information on the\nprofitability of investments to facilitate decision-making, especially when it\nis done by cost centers.<\/p>\n\n\n\n

In general terms, fixed assets have a\ncertain useful life and throughout their “journey” in the\norganization, the use made of them, the time elapsed since their acquisition or\nfor example the technological obsolescence they may suffer, will mark substantially,\nthe way in which those responsible for said organization will carry out the\nrelevant repayments. Or, at least, it should be.<\/p>\n\n\n\n

The management of this set of assets of a real or financial nature whose permanence within the company goes beyond the fiscal year, constituting its permanent investments by fixed asset management companies in India<\/a><\/strong>, presents an important capacity to offer valuable information to managers. However, this potential is not always taken advantage of and, on too many occasions, companies remain superficial, making amortizations, say, linear (applying the same percentage during the stipulated period) that they present at the end of the fiscal year.<\/p>\n\n\n\n

\"<\/figure>\n\n\n\n

Two strategic errors that, first, will\neliminate the possibility of \u201cadjusting\u201d the amortization to the fiscal and\npatrimonial interests of the company and, second, will annul any possibility of\naddressing in time, a possible crisis or growth situation since it will not be\navailable of a real image of the organization.<\/p>\n\n\n\n

Two\ntips to keep in mind<\/strong><\/p>\n\n\n\n

One- Simplicity must be avoided and focus\non covering the needs of the company, looking for the most interesting\namortizations according to the circumstances of each company and always in line\nwith current legislation.<\/p>\n\n\n\n

Two- If the company has machinery, computer\nequipment, or any other resource necessary for the development of its\nproduction process and expects to carry out the corresponding annual\namortization, the data that it will obtain during the year will not be adjusted\nto reality and, therefore, therefore, your financial image will be distorted.<\/p>\n\n\n\n

Given that amortization is an expense, it is advisable to promote advanced management so as to allow amortization at any time and have an impact on the accounts, when desired and not only at the end of the year in the Annual Accounts. If on a case-by-case basis, the Profit and Loss balance sheets are extracted on a monthly basis, the logical thing is that the amortizations by fixed asset management companies are also made with the same rate and that they are reflected in each Balance so that there is no lag.<\/p>\n\n\n\n

Some companies still rely on being able to\nmanage their fixed assets, either through conventional spreadsheets or at best,\nusing very simple management programs. This is another big mistake because with\nthese tools you can make “simple” depreciation but it is not possible\nto address optimal management of fixed assets. Amortize is not the same as\nManage. In addition, the excessive time and the wide margin of error that the\nspreadsheets present, are some other inconveniences, from my point of view,\ninsurmountable.<\/p>\n","protected":false},"excerpt":{"rendered":"

The fixed assets that are part of the assets of a company, those assets that cannot be converted into liquid in the short term but that are normally necessary for the operation, say “normal” of the company, provide very valuable information about the state general of it. Its optimal management will allow, not only to…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[15,16,12,14,17],"class_list":["post-98","post","type-post","status-publish","format-standard","hentry","category-fixed-asset-management","tag-asset-management-system-in-india","tag-fixed-asset-management-best-practices","tag-fixed-asset-management-companies-in-india","tag-fixed-asset-management-system","tag-internal-control-risk-assessment"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/98","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/comments?post=98"}],"version-history":[{"count":1,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/98\/revisions"}],"predecessor-version":[{"id":100,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/98\/revisions\/100"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=98"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=98"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=98"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}