Sage FAS (formerly Sage FAS Fixed Asset Software) helps you track and manage all the fixed assets in your office, plant, or warehouse. It enables you to manage inventory, depreciation, and tracking of all your fixed assets.
As the year draws to a close, many companies are reviewing their office equipment and inventorying their existing fixed assets. They’re contemplating new purchases, renewing leases, and leasing versus buying.
Before making any big changes in your equipment, let’s look at a few important questions you should ask before buying new office equipment. Office equipment can represent a big chunk of fixed assets as reflected on your Sage FAS tally. These questions can keep you from making a costly mistake with new office equipment purchases.
Three Questions to Ask Before Buying New Equipment
- Will new equipment provide greater benefits?
Before buying any new equipment, ask yourself what benefits it will provide. Some benefits are clear: if you’ve added a second warehouse, you may need another forklift as well as a computer station and copier for the new building.
Other equipment benefits aren’t as clear-cut. You may be contemplating the purchase of a new copier. The old copier is working, but it jams frequently. You’re starting to notice how long it takes the team to open the machine up and remove the jam. It’s hurting productivity.
Is spending the money on a new copier worth it just to save headaches and time? It might be. Creating a pros/cons list or cost-benefit analysis can help you determine if the benefits of spending on new equipment outweigh the costs.
Other benefits that new equipment purchases might provide include:
- Enhanced workflow
- Additional product introductions
- Cost savings on equipment and supplies
- Saving time
Each of these benefits is worthy, but you’ll need to decide which is the most important to your organization. The answer will lead you to determine if a new purchase is the right move.
- What is the complete cost?
Along with the benefits, examining the cost is important. It’s not just the cost of the new equipment that matters. Other costs include the cost of maintenance, supplies, and other factors that go into the running or maintenance of each piece of equipment.
As an example, consider the cost of two specialty label printers. Printer A costs more to purchase, but Printer B’s paper and ink cost much more. Which is the bargain? It depends on how frequently you will use it. Over time, higher printing volume will make Printer A the cheaper printer because the cost of buying ink and paper is less. You’ll get more labels for the money than you do with Printer B.
That’s when Sage FAS comes in handy. It can help you weigh both the fixed costs of the new equipment purchase and the variable costs. Looking at historical data about depreciation values, usage rates, and more, you can determine the true costs of obtaining new equipment.
- How should the new equipment be acquired?
You can buy new equipment outright, lease it, or lease to own it, depending upon the equipment. Consider the tax rate arbitrage, business entity type, and the types of leases available for the equipment.
Consult with your company’s accountant to ascertain the most favorable arrangement for obtaining new equipment. By reviewing all the figures involved with acquiring new equipment, your accountant can guide you to the smartest choice for the financial health of your business.
Sage FAS: Data You Can Count On
Sage FAS offers data you can count on. Manage the entire fixed asset lifecycle, prepare for year-end financials, calculate depreciation, and more. Conduct physical inventories of your fixed assets and plan with capital budgeting. Custom reports make it a breeze to find the information that you need for all your fixed asset management needs.
It takes time to find the right equipment for your needs. By determining whether you need new equipment, the benefits it gives your company, and how you plan to pay for it, you can maximize the financial benefits of your new purchase while obtaining valuable equipment to fill more orders and meet business needs.
Sage FAS from Emerald TC
Emerald TC offers Sage solutions such as Sage FAS to assist with all important business decisions. We help our customers choose the right software for all their needs including accounting, operations, supply chain management and more. Contact us or call 678-456-6919 for more information.