Understand Your Business's Financial Position With Sage FAS (Fixed Assets)


When it comes to business valuation, knowing what your assets are will enable you to firmly determine what your current financial position is. While most assets you'll be accounting for are liquid assets, in other words, assets you'll be selling to customers or will be involved in your cash flow accounting, other assets are accounted for differently.

Most of these are fixed assets, such as your building, whatever tools are required to produce your product (such as pans and ovens for a bakery, shelving units, etc.) and even the vehicles you use in your business for delivery. These assets are accounted for differently than liquid assets because they are different.

These are things that, if you decided to liquidate, can't be sold quickly or for their full value. PP&E (property, plant and equipment) costs and values are tied to the core valuation of your company and finding ways to determine current actual value varies depending on what the fixed asset is. Assets such as buildings and other property will depend on tax values, mortgages and other real estate market values. Other assets, especially those that wear out, will be subject to depreciation, lien values, condition and other measures. Sage FAS is able to take these factors into account when determining a "current value" for each of your fixed assets helping you derive bottom line numbers.

Liquid assets such as inventory on hand, materials and other items that will eventually be sold are relatively easy to determine a value for. Fixed assets, since some will appreciate in value such as property while others depreciate in value such as vehicles are harder to place a fixed value on. With Sage FAS, resolving a true financial picture of your business is not only possible, but easier than ever before. All it takes is a few mouse clicks to place assets in the proper categories, inserting the values and your fixed asset software takes care of the rest.

If you are in need of a software solution like Sage FAS, contact us for an evaluation and quote.

BAASS Consultant

About The Author

BAASS Consultant