Property and Fixed Assets
Part 3 of a 3 part series
- Almost fully depreciated assets.
- Depreciation as a percent of sales significantly out of line with industry averages.
- Net sales to net fixed assets significantly out of line with industry averages.
Steps to Improve: EQUIPMENT
- Don’t fix what isn’t broken; ask, “will this enhance the bottom line?”
- Repair services can cut capital costs in hard times; plan accordingly.
- Avoid brand names and list prices; consider used furniture.
- Purchase fixed assets from wholesalers / special discounters.
- Take advantage of purchase discounts.
- Consider buying government surplus equipment.
- Plan for replacement of capital assets; have a capital budget plan.
- Be sure insurance coverage is adequate.
- Be sure computers are backed up regularly with off premise storage.
- Be sure computers are insured for stored data, hardware, software and restoration.
- Use owner- / employee-provided tools where appropriate.