The Fixed Asset Register: A Beginners Guide}

The Fixed Asset Register: A Beginners Guide

by

Liz Cromwell

Within the wider framework of keeping a companys books there sits a plethora of different accounting methods and record keeping processes that have to be used, some because there is a statutory requirement, others by virtue of good common sense; into the first category falls the FAR or Fixed Asset Register, the Companies Act of 1956 means that it is mandatory for companies to maintain a Fixed Asset Register as part of their general business bookkeeping.

The Fixed Asset Register is quite simply a record of the chunk of a companys assets that constitute its fixed assets; fixed is the term used to describe assets which cannot easily be converted into cash and are not held for the purpose of selling them on; assets that are owned to enable a business to function, either to provide a service or produce a product; in the case of manufacturers it is usually machinery, land, property etc. and for service providers, equipment and premises; it can also include less tangible assets such as copyrights, patents and trademarks.

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The reasons for the existence of an individual register of this kind are many; the Governments interest lies mainly in always knowing the value of a companys fixed assets for taxation purposes, hence the legislation, but there are other benefits to knowing the separate costs of such assets not least for the purposes of a companys insurance.

However this record is not a simple list, it collects very specific data in a precise and detailed way and the way that it is recorded can tell those who understand FAR a lot at a glance. In addition to detailing the nature of a companys fixed assets, the bookkeeper must account for loss or impairment of assets as well as logging the ongoing condition and changing value.

Keeping track of the exact origins of large assets can be problematic for the person keeping the records, as it can involve physical verification, which, as the name suggests would mean physically finding and visiting each piece of equipment or building to confirm its existence and location; most bookkeepers therefore tag each asset in the register with an engraved alpha-numeric identification number to make tracking simpler; of course in the case of land and vehicles there will conveniently already be independent registration numbers.

Part of the recording process includes logging the assets value in the form of an assigned carrying cost, in order to do this a valuation has to take place; the carrying cost is usually set at either the current market value, the potential sale or realisable value or the distress sale value, which basically refers to an assets scrappage value.

Most bookkeepers and accountants who have the task of maintaining the Fixed Asset Register do so nowadays with the help of specially designed computer software; these programs can produce reports on demand and collate large amounts of information. Although they do not necessarily make the job of keeping the FAR up to date a simpler one, they certainly can make it less time consuming, which in turn helps with the accuracy of these important and required records.

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The Fixed Asset Register: A Beginners Guide }

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Business Adviser Consultancy Services For Small To Medium Sized Businesses}

Business-Adviser Consultancy Services for Small to Medium Sized Businesses

by

Mark Bonney

Running a successful business enterprise is not a simple challenge. Having access to finance is not enough in today’s complex business environment. Business owners are no doubt experts at what they do but they must also have the knowledge and understanding of various other aspects like financial planning, administration, complex rules and regulations governing the business as well as compliance issues in order to be ahead in the field.Business-Adviser consultancy services for small to medium sized businesses provides sound advice and the know-how to help them grow and be successful. Although Business-Adviser can handle your accounts and bookkeeping they also have the expertise and long experience in other areas like tax compliance legislations, operational management, succession planning, marketing strategy, financial management, audits, etc.If your business needs a boost with some strategic planning, business adviser consultancy services can do it for you. The experts at the consultancy firm draw upon their vast experience of the market trends and business climate to provide you the right advice that will assist your business and bring it to the right track.Even if you have a healthy balance sheet, there is always scope for more improvement. Small to medium-sized businesses always have the potential to grow out into larger enterprises. If you have a small-sized local business, you might want to think of operating nationwide or even internationally. Business-Adviser Consultancy Services can assist small to medium sized businesses with:Business Planning: To be successful in any endeavour, a proper plan is essential. This is also true of a business enterprise even if it is doing well in the current scenario, a formal plan must be put in place to assess the direction it takes in the future as well as to identify its business goals. Business-Adviser consultancy services can offer pertinent advice on a business plan and help take timely decisions to improve profitability.Compliance Issues: Complying with various rules and regulations pertaining to taxation, audit and regulatory requirements can be a daunting task for small business owners. Business-Adviser consultancy services walks you through these complex compliance issues with easy to follow schedules so as to avoid penalties.Understanding Financial Implications: The financial information drawn up to satisfy the regulatory authorities gives a reasonably good picture of the state of your business. However, as the owner, understanding the Residential Finance implications may not be all that easy. Business-Adviser helps you get a grip on the issues and understand the meaning the numbers convey in layman terms.Business-Adviser Professional Bookkeeping Services for small and medium sized businesses ensure that you have the knowledge to take the right decisions at the right time so as to promote growth and achieve your business goals. Visit http://www.business-adviser.com.au for any kind of assistance you need.A complete financial and system analysis is an important first step in figuring out what happens next. Once we have an understanding of just what the issues are and what needs to be done to achieve the outcomes the business owners desire, we can begin to put into place the necessary procedures to maximize profit and performance of any business.Article Source: eArticlesOnline.com

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How Do You Get A Utility Sales Tax Exemption?}

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How Do You Get a Utility Sales Tax Exemption?

by

Jordan Rocksmith

Your business may be subjected to unnecessary or even unfair taxes, all of which can hurt your business revenue and even potentially hurt your ability to run your business. The overhead costs for your business are high enough; how are you supposed to deal with unnecessary taxes?

Here is some vital information on how you may get a utility sales tax exemption in Indiana. This information is provided by the Indiana Department of Revenue, which is the department that levies state taxes. While the following information suits their publicized statements on who is exempt from these taxes, you may still want to speak to a qualified tax attorney about you potentially receiving an exemption, even if the Department of Revenue does not outright state you fit into the typical category of those to whom they allow exemptions.

This information can be confusing for many business owners; if you have trouble following along, consider simply speaking to an attorney about these issues. Still, the following can be a general guideline for those looking to decrease their business costs by seeking legal and substantial tax exemptions.

What Is a Utility Sales Tax?

This is a tax levied by the state on all residential and commercial properties that have not filed for and do not qualify for an exemption. The thought process behind this exemption is that utilities such as electricity and gas are purchased and become the owner’s property. Therefore, because it is a property bought from a separate company, this is taxable in the way that any other pieces of property, like furniture or clothing, are subject to a sales tax. The exact percentage of the sales tax depends on the state.

Again, not everybody has to pay this tax. Alleviating the tax burden that is tacked onto your utility bills can sharply decrease your monthly and annual fees.

Who Gets an Exemption?

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According to the Indiana state government, utility sales tax exemption is typically given for the following types of businesses:

Companies that resell but do not produce utilities

Telecommunications service providers

Manufacturing companies

Restaurants

Farmers

Non-profit organizations

Government institutions

Public transportation providers (municipal or commercial)

Printing service providers

Exemption Form

A form known as the ST-200, which is provided by the state of Indiana, is used for the Department of Revenue to determine your exempt status, or whether or not you can become exempt from the utility sales tax. The form is provided on the state Department of Revenue’s website or can be obtained from their offices.

Even if you are qualified for an exemption, your claim may be denied by the state based on several minor issues like incomplete information, outstanding liabilities, and information related to your past tax returns filed for your business.

A qualified legal professional can help you fill out and file this form. With legal assistance, you are more likely to have your application approved.

Utility Studies

If you claim that utilities you purchase are used for the company’s production or transportation processes, a utility study must be performed. These studies must accompany your application and provide information about pieces of equipment that are related to your meter, your hours of use, an explanation of your specific usage of the utility, and more. Again, legal assistance can make this much easier, especially because the Department of Revenue cannot approve an incomplete or improperly filed utility study.

However, a complete and well-documented utility study along with an ST-200 claim, can help you receive your utility sales tax exemption in Indiana. While the state provides information to help you fill out the application and perform your own utility study, a legal professional can assist you with this complex process and help you receive the tax break that you are due.

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Utility Sales Tax Exemption Indiana.

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How Do You Get a Utility Sales Tax Exemption? }

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