With the deadlines rapidly approaching for filing tangible tax returns, it is time to highlight National Asset Management Awareness Month. This annual event urges businesses to implement strategies that improve asset management practices and effectively contribute to the mission and revenue goals. Therefore, we want to take advantage of this time to help our clients better understand what asset management means, the importance of creating an asset management plan, and how our team can assist with the overall process.
Meaning of Asset Management
Asset management is the systematic process of acquiring, maintaining, and managing a company's assets, including equipment, infrastructure, and other tangible and intangible assets, to mitigate risk, maximize value and ensure long-term sustainability. It can also have benefits regarding financial reporting, compliance with regulations, and business operations.
Importance of an Asset Management Plan
By developing and implementing a comprehensive asset management program, businesses can make informed financial decisions, increase efficiency, improve future budgeting plans, and enhance the bottom line. Good asset management can eliminate the costs associated with under-maintenance or over-maintenance.
Furthermore, effective asset management is vital for filing tangible tax returns. Tangible assets represent physical items that have a set value and can be touched, such as machinery and equipment. Many states require businesses to file these tax returns by April 1st. Some states allow for a short extension of time to file. Late filing penalties are effective after this date.
By accurately reporting the economic value of tangible assets and paying taxes accordingly, a business can ensure compliance with state regulations and carefully avoid potential penalties for non-compliance. Effective asset management helps identify assets that are no longer in use or have become obsolete. Removing these assets reduces tax liability. So, take the time to properly evaluate your assets and file your tangible tax returns this month.
Here to Help
If you have questions about your unique situation or need strategic financial advice, we are here to help. We build value-added relationships with each client to understand their business structure to provide solid solutions, and our approach offers direct access to the firm's decision-makers. Our innovative, cross-functional services help businesses address the challenges ahead. Contact us to let us know how we can best support you.