In Cloud ERP implementations, clients typically choose to take advantage of the Fixed Asset application for their financials. While fixed assets are pretty straight forward, sometimes the transition can be a bit bumpy. Over the next three weeks, I will provide tips on making this transition smoother.
Tip for the week: A Picture can say more than words
When asking a client for the default accounts for each asset category, I have found that showing them a snapshot of the accounting entries goes further than anything. For example, when asking for the Asset Cost and Asset Clearing account… this is the picture:
Another example, to be used for the Depreciation Expense and Depreciation Reserve account:
Then the client can “see” exactly how these accounts function.
Along with these pictures, I also provide definitions. Due to different terminology used in different systems, the pictures and definitions combined are a great “fix” for Fixed Assets.
I have personally found these to be beneficial. Especially for clients who have either used a third party to manage their assets or they are restructuring for improved reporting.
