The Scholar of Business

Your prices are too low! You’re having problems with collections! The economy is in a downward spiral and your sales are way off.

And frankly, you just don’t want to hear what some wiseguy business consultant is telling you in his postings.

Hey, I’ve been there, I know how you feel. It’s terrible! It really is!

Until you accept the long, hard reality that changes have to be made, you might as well stay in that bed, it isn’t going to get better unless you try something.

Well the other day I actually got into a debate on Facebook with a buddy of mine… and I meant no disrespect, I just wanted to open his eyes to better possibilities.

I received this response from him…that I’d like to share with you.

“While you may think I was being argumentative, you touched on some hot buttons lately in regards to pricing and under-pricing so rampant in my industry. It’ll please you to note that I’m bucking that trend and raising my pricing to where it is worth getting out of bed again.”

Wow, I’m humbled that he took my advice.

Sadly, there are many companies out there that will never open their eyes to others advice. They come up with all kinds of excuses why certain approaches won’t work. Yet, they never try anything. They just know it won’t work.

Within the wider framework of keeping a company’s books there sits a plethora of different accounting methods and record keeping processes that have to be used. Some because there is a statutory requirement, others by virtue of good common sense. Into the first category falls the FAR or ‘Fixed Asset Register’, the Companies Act of 1956 means that it is mandatory for companies to maintain a Fixed Asset Register as part of their general business bookkeeping.

The Fixed Asset Register is quite simply a record of the chunk of a company’s assets that constitute its ‘fixed’ assets; fixed is the term used to describe assets which cannot easily be converted into cash and are not held for the purpose of selling them on; assets that are owned to enable a business to function, either to provide a service or produce a product; in the case of manufacturers it is usually machinery, land, property etc. and for service providers, equipment and premises; it can also include less tangible assets such as copyrights, patents and trademarks.

The reasons for the existence of an individual register of this kind are many; the Government’s interest lies mainly in always knowing the value of a company’s fixed assets for taxation purposes, hence the legislation, but there are other benefits to knowing the separate costs of such assets not least for the purposes of a company’s insurance