Sophisticated depreciation and lease treatment for accounting AND tax in the USA
We undertake detailed modelling of fixed asset depreciation and lease calculation rules for both accounting and tax.
We monitor changes to IRS tax rulings and accounting standards like US GAAP and ASC 842 so you don’t have to.
And, of course, we are ISO27001 certified.
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Fixed assets are crucial in facilitating the provision of services and revenue generation in utility or energy companies. They form an integral part of a company’s infrastructure and are classified into various key areas, each necessitating careful accounting practices. Below are typical categories of the primary fixed assets listed on the balance sheet of such companies.
Are the physical structures and facilities necessary for energy production, transmission, and distribution. This group consists of power plants, substations, transmission lines, pipelines, and distribution networks. Due to their significant investment and extended operational lifespan, infrastructure assets make up a considerable portion of the company’s balance sheet. Effective management requires routine maintenance to uphold operational efficiency, along with strategic planning for enhancements and expansions to accommodate increasing demand and regulatory standards.
Utility companies typically possess a wide range of generation assets, including turbines, generators, solar panels, and wind turbines. These assets play a crucial role in energy production. Efficient management involves enhancing the performance of these assets to increase output and reduce downtime and operational expenses. To achieve these goals, regular maintenance plans, equipment monitoring systems, and predictive maintenance methods are commonly utilized.
Utility companies need extensive land and rights-of-way to support their infrastructure, which includes power lines, pipelines, and substations. Proper management of these assets is essential to guarantee a continuous energy supply and address potential risks like encroachment, regulatory issues, and environmental concerns. Moreover, assessing the value and accounting for land and rights-of-way involves considerations such as depreciation, impairment, and fair value assessments.
Utility companies manage a variety of vehicles and specialized equipment for tasks such as maintenance, repairs, and emergency situations. These assets include service trucks, excavators, specialized tools, and diagnostic equipment. Proper management requires maximizing fleet usage, tracking maintenance schedules, and adhering to safety regulations. It is also important to accurately document the depreciation of vehicles and equipment to account for their decreasing value as time passes.
Buildings and facilities: Utility companies frequently possess administrative offices, service centers, and other crucial facilities for their business operations. These assets necessitate continuous maintenance and regular enhancements to cater to the requirements of both employees and customers. Effective management entails maximizing space utilization, adopting energy-efficient technologies, and ensuring adherence to building codes and regulations.
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Proper asset management software for utilities fixed asset accounting, including depreciation and revaluations, is crucial for utility and energy companies. Precise accounting guarantees the correct depiction of the company’s assets on the balance sheet, offering stakeholders a transparent view of the organization’s financial status and operations. Depreciation aids in the methodical distribution of asset costs throughout their useful lifespan, accurately portraying their decreasing value.
Utility depreciation accounting plays a key role in determining income by aligning asset usage expenses with generated revenues. This process helps calculate essential profitability metrics that are vital for decision-making and investor trust. Conversely, revaluations and impairments allow companies to update asset values based on market changes or impairment, ensuring that the balance sheet accurately represents current economic conditions.
Furthermore, following fixed asset accounting standards not only improves regulatory compliance and transparency but also helps build trust with investors, regulators, and other stakeholders. Strong fixed asset for energy industry accounting practices are essential for effective financial management and strategic planning.
Subscribing to AssetAccountant’s fixed asset depreciation software for energy industry provides businesses with the essential tools needed to effectively monitor, maintain, and dispose of their fixed assets. This includes tracking asset acquisition and disposal, as well as maintaining accurate records of their location, condition, and value. By utilizing our fixed asset management software for utilities, businesses can ensure that their fixed asset utility depreciation and lease accounting processes are efficient, accurate, and reliable.
Relying on spreadsheets or manual processes to manage fixed assets can be risky and inefficient. Spreadsheets are prone to errors and can be difficult to keep updated, while manual processes are time-consuming and may lead to missing important information.
With AssetAccountant, utilities and energy companies can automate many fixed asset for utilities management tasks, saving time and reducing the risk of errors. Additionally, AssetAccountant is certified to the ISO27001 data security standard, ensuring data security and protection.
AssetAccountant’s cloud-based software offers numerous advantages to manage fixed asset for energy industry compared to outdated desktop-based solutions, making it a more efficient and effective choice for accounting needs.
“Up until 2021 we had been using Excel spreadsheets to calculate and manage fixed asset tax depreciation for the group's registers, which was not sustainable. To address this and to implement automation of the process, we researched solutions offered in the market, including by the large accounting firms and specialist software providers. After thoroughly vetting AssetAccountant as a vendor, testing the software and its calculations, and reviewing the company’s data security, we committed to implement the software for all tax fixed asset registers for the Whitehaven Coal group. Since implementation we have been very satisfied with the decision. The software is intuitive, robust, easy to use, and accurate. AssetAccountant’s commitment to ongoing development of the product's features has also been impressive.”
"After being introduced to AssetAccountant in 2020 by PriceWaterhouseCoopers, I carefully reviewed the software's functionality to suit our complex fixed asset depreciation and lease accounting requirements. For example Buildsafe acquires, disposes and writes off thousands of assets including partial transactions. We also need flexible reporting and detailed journals. I have found the software to be enterprise standard, robust and precise. The software is a very elegant blend of beauty and smarts. The ongoing support, product development and assistance has been responsive and reliable. An amazing team and product. Thank you."
"AssetAccountant (AA) has produced the ultimate Fixed Asset Management System. AA integrates seamlessly with Xero and produces reports that satisfies any auditor with easy to trace transactions that are verifiable. The real hidden gem is their Lease Accounting facility which takes all the heartache and time consuming issues out of AASB16. Fantastic product - has literally saved me hours of work."
"We love using AssetAccountant. The time savings for every client’s depreciation entries means not only is profit increased on every job, but our additional team capacity can be directed to more valuable work. There is literally no risk in the investment of AssetAccountant fixed asset depreciation software."
"Big Boy Jocks On.... Ever wanted the big company fixed asset system without all the clunkiness and overthinking on the part of the software developers (I'm looking at you Thomson Reuters...)? Well then you need AssetAccountant. It provides just the right mix of complex depreciation calculations and beautiful user interface. It's a system designed by accountants and executed perfectly by developers. The integration is seamless with Xero (you can sign into AA with Xero credentials which is awesome if you are already running Xero on your browser) and journaling synchs are very flexible between the two applications. Then there is the price. I challenge you to find a more robust fixed asset system at these price points. Well done AssetAccountant. You get me. I now have my big boy jocks back on for fixed asset management....and they fit!"
"From the initial contact with the team at AssetAccountant to the final implementation, we have received prompt and positive responses. The effective support service and continuous improvement makes AssetAccountant a product highly recommended to a wide variety of industries as well as to accounting firms."
"It’s amazing we calculated this year’s depreciation in just a matter of minutes!"
"Our organisation was looking for a standalone cloud-based fixed asset register that could calculate depreciation for multiple companies. AssetAccountant was a perfect solution that removed the need for tracking assets and calculating depreciation through spreadsheets.
The team at AssetAccountant were very responsive throughout the implementation process. The system is straightforward to use and has various options for both asset tracking and depreciation to make it suitable for most organisations."
"Now that AssetAccountant is in our app store, our customers and sales team have a cloud option for fixed asset depreciation which has a strong integration with QuickBooks Online."
"After years of “paying a premium” for our Asset Management, we decided to go in-house. More than impressed with the ease and capability of the software, and the staff were a pleasure to deal with from go to whoa. Fabulous to have monthly reporting, as opposed to annual as well."
"I have seen a lot of niche products come and go but the one constant has been the lack of a decent fixed asset register. I was recently invited to see the latest incarnation and it did not disappoint. I am confident that both accounting firms and corporate clients will be lining up to use it – I have already been extolling the solutions’ virtues."
"We initially came across AssetAccountant when researching potential replacements for the Xero asset register. AssetAccountant sparked our interest due to its ability to easily and transparently forecast depreciation, transfer assets between sites, revalue assets and asset part disposals. The AA team have been extremely helpful which has provided us with confidence in the product, we look forward to exploring additional features to find more efficiencies in our processes."
"We highly recommend the use of AssetAccountant. Our clients benefit immensely from accurate asset register records, making spreadsheet accounting (and typical errors) a thing of the past. We can easily maintain tax and accounting registers providing our clients with accurate and meaningful information. AssetAccountant is a breeze to use, and we love that it integrates with QBO and Xero."
Fixed assets in the utilities and energy industries include long-term physical assets such as power plants, substations, pipelines, and equipment used in energy production and distribution. These assets are essential for the continuous operation of utilities and energy companies
Effective fixed asset management is crucial in the energy industry because it ensures that all assets are properly tracked and depreciated over their useful life. This not only helps in optimizing asset utilization but also in complying with regulatory requirements and financial reporting standards
Fixed asset software for the energy industry automates the financial management and depreciation of assets. It provides accurate data on asset location, condition, and value, helping companies to reduce costs, improve efficiency, and ensure compliance with industry regulations
When selecting fixed asset software for the energy industry, look for features such as automated depreciation calculations, regulatory compliance support, real-time asset tracking, and integration with other financial and operational systems. The software should also handle large-scale asset portfolios typical in utilities and energy companies.
Fixed asset software simplifies the depreciation process by automating calculations based on asset type, lifespan, and applicable depreciation methods. This ensures accurate financial reporting and helps in planning for future capital expenditures.
Utilities and energy companies face challenges such as managing a vast array of assets spread over large geographic areas, ensuring compliance with stringent regulations, and accurately tracking the depreciation of complex equipment. Fixed asset software can help overcome these challenges by providing a centralized, automated system for asset management.
Yes, fixed asset software can integrate with other systems such as enterprise resource planning (ERP) systems and financial management software. This integration ensures seamless data flow and improves overall operational efficiency.
The cost of implementing fixed asset software in the energy industry varies depending on the size of the organization, the complexity of the asset portfolio, and the specific features required. However, the investment often pays off through improved efficiency, reduced manual errors, and enhanced compliance.
Yes. Our software is hosted on Microsoft Azure and our whole business, including our software & development process is ISO27001 certified.
