The Importance of Effective Asset Management for CPAs

Over the past year, many CPA partners across the country have expressed a strong desire to enhance their staff’s face-to-face interactions and proactive consulting opportunities with clients. According to the Harvard Business Review, in-person requests for information are 34 times more successful than those made via email. As clients invest in new facilities, process-related equipment, company vehicles, and technology hardware, firms are increasingly burdened with managing numerous asset ledgers, reports, and reconciliations associated with these investments. Tracking property, plant, and equipment (PP&E) assets across multiple locations and tax jurisdictions further complicates matters, potentially leading to “ghost” assets and increased tax exposure. Effective asset management is crucial for a business’s success and for maximizing returns on investments.

Assets such as buildings, building improvements, land improvements, computers, machinery, and vehicles are categorized as PP&E. These long-lived, fixed assets are essential to a business’s operations and are expected to generate revenue for many years after they are put into service. Recent regulations, including the Tangible Property Regulations, the PATH Act, and the Tax Cuts and Jobs Act, have made the compliant tax treatment of these vital assets more complex. This requires a focused approach to maximizing deductions for clients. As a comprehensive specialty tax extension to CPA firms and their clients, McGuire Sponsel offers high-quality service in assisting businesses with tracking, depreciating, and reporting their PP&E assets.

Our team has proven experience and expertise in managing these assets. This includes accounting for current year additions, handling the transfer of assets between locations, and disposing of assets that are either sold or retired. We can not only identify asset movements but also provide accurate and timely federal or state depreciation reports. This includes identifying assets that qualify for bonus depreciation to enhance clients’ cash flow, ensuring the correct depreciation is applied to all assets year after year, and providing accurate Forms 4562 and 4797.

McGuire Sponsel’s fixed asset experts can alleviate the workload for firms while maximizing benefits for clients. Please reach out to our Fixed Asset Services team with any inquiries or questions regarding fixed asset management.