Fixed Asset Accounting Services

Avoid missing tax depreciation benefits or creating costly tax compliance issues by properly addressing the tax challenges of your company’s fixed assets — which often compose a significant portion of the balance sheet.

Tax depreciation has become more complex due to tax-specific framework guidance for expensing and capitalizing costs, ever-changing tax depreciation laws, and the inability of antiquated enterprise resource planning (ERP) systems and software to incorporate current depreciation rules.

Explore solutions for your business with:

Fixed Asset Tax Analysis
Fixed Asset Depreciation Compliance and Reporting

Fixed asset tax analysis

Identify opportunities to apply fixed-asset changes that can help provide immediate tax savings through accelerated tax methods for depreciation, repair and maintenance expenses, and other items.

An analysis can also help identify various compliance issues, and tax changes may be applied to assets placed in service in prior periods without amending tax returns.

How the analysis process works

Assessing the specific needs of your business, our professionals will guide you through each step of the process.

Review assets: Conduct an assessment to identify opportunities to accelerate recovery or address compliance issues.
Reassess depreciation method: Propose alternative recovery methods such as shorter depreciable lives, comparing expenses to capitalization, and more.

Fixed asset depreciation compliance and reporting

Meet your fixed asset and depreciation reporting compliance needs with crafted solutions to account for fixed assets for federal, state, and other reporting needs throughout the year.

Benefits of fixed asset accounting

Fixed asset accounting can help your company in many areas:

Expedited processes and operations

Free up personnel time allowing them to upskill in the organization

Save on cost and other resources to acquire and maintain fixed asset and depreciation software

Process reported additions, disposals, and other fixed asset data each period with automated processes

Strategy

Take advantage of ever-changing special provisions and rules related to cost recovery of assets for federal and state tax purposes

Identify disposals and in-service date issues and opportunities related to capital project assets

Identify opportunities for partial disposition losses and tax-deductible repair expenses capitalized for book purposes

Assess assets for eligibility of accelerated tax depreciation methods such as bonus depreciation

Apply accelerated tax depreciation methods and recovery periods based on business use

Assess construction in process (CIP) accounts for in-service date compliance issues

Compute state-specific bonus depreciation and other special provisions

Calculate qualified business asset investment (QBAI) and maintain alternative depreciation system (ADS)-depreciation for the foreign-derived intangible income (FDII) deduction

Implement retroactive fixed asset changes, whether elective or mandated by legislation

Forecasting and proactive solutions

Project depreciation for future periods using acquisition and disposal assumptions

Compute depreciation for federal, alternative minimum tax (AMT), state and local, and other tax books on a quarterly or annual basis

Prepare depreciation, disposal, and other reports as needed

Track book costs and tax adjustments, with summarized roll-forward schedules

How the process works

To address your accounting needs, our professionals will:

Send a ledger of your fixed asset additions, disposals, and other activity in the current period

Import reported data into tax depreciation software

Apply tax recovery periods and methods to additions, with disposals entered for computation of gain or loss

Calculate depreciation of assets for the period

Receive tax depreciation reporting for the period

Fixed Asset Accounting Services