Asset Identification & Tagging by the Lyall CPA Firm
The process of identifying and tagging assets is a crucial one. This service is a wall-to-wall review of your equipment and allows for floor-to-book reconciliation.
This process allows us to identify ghost assets, obsolete equipment, idle equipment, and other issues with your current asset listing.
The process may seem complicated. Simply put, there are three stages to asset identification and tagging, which includes:
- Evaluating taxable equipment
- Tagging equipment with numbers or barcodes, depending on client preference
- Reconciling newly recorded asset inventory with the current asset listing
Asset tagging is beneficial to your business as it simplifies tracking and eliminates overreporting of assets and tax overpayment.
You could be paying taxes on equipment that is no longer in operation, has been replaced, or disposed of. Having an accurate asset listing can result in significant property tax savings.
In some cases, after the removal of these ghost assets, it may be possible to file an amended personal property tax return to get a refund.
Once your assets listing has been updated, it is essential to create internal controls and infrastructure to prevent overpaying your taxes due to incorrect asset listings in the future. The key is vigilant bookkeeping.
Asset tagging is detailed and complicated work, and we make sure to walk you through all of your tax needs.