Ever wondered how businesses find some cash flow so they have some funds for operating expenses in their back pockets? This might sound indifferent but if they manage their fixed assets properly and receive detailed cost segregation then most businesses could generate extra cash flow.
If given a thought, there really are many ways to capture extra cash flow through fixed assets.
Given below are the top 5 ways fixed assets can exploit money:
- Cost Segregation: This is a strategic tax planning tool that allows companies and individuals who have constructed, purchased, expanded or remodelled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
- Revenue Procedure 2011-35 Study: This allows taxpayers to change their method of accounting and claim the amortization amount they never claimed (i.e. bonus depreciation).
- Physical Fixed Asset Inventories: This method saves cost all across the board with Property Taxes, Insurance Premiums, Financial savings impact and more.
- Appraisal of Assets: Appraisal of assets is a procedure where an asset value is determined. Based on a number of factors, such as the cost, the income generated and its market value it is compared to other assets.
- Automated Depreciation System: If an organization is still stuck with the spread sheet then they are missing out on opportunities to capitalise on additional expense and bonus that they are entitled to have. There are some or the other calculation errors whenever there is an audit to a spread sheet.