Use case and intro to cloud-based fixed assets lifecycle management

1. QB Coach
Meetup
WeWork SOMA
April 20, 2017

2. Speaker bio
• Ronny Hoesada is the founder of Fixed Asset Connect
• CFO for midsize consumer product companies & Big 4 accounting
• Business Process Improvement & ERP implementation
management consultant
• BA with Honors in Economics and MBA degrees from UC Berkeley
• Web app developer

3. The tale of fixed assets tracking
Fixed assets represent the largest single
asset category on the balance sheet. Yet
rarely do fixed assets command
management time that is proportionate to
the magnitude of the investment.
The assumption is often made, “Well our
records might not be perfect, but they were
good enough to get by our audit last year,
nothing has changed.”

4. The trade-off between internal control risks
and monitoring costs
There is direct correlation
between the costs of running a
fixed asset system and the number
of assets you are trying to control
with that system by increasing
capitalization limit.

5. Use case: software development
As software is eating-up the world, chances
are Accountants are struggling to make sense
of capitalizing or expensing software
development. Accountants may run into one
of two risks:
• either Accountants conservatively expenses
all labor costs, short-changing organization
from true valuation, or
• Accountants obstructs agile adoption
because they’re comfortable capitalizing
waterfall development but not agile
development.

6. Capitalized-or-expensed: conflicting interests
CAPEX OPEX
Investors
Software
developers
Tax-maximizing
companies
Pre-IPO startups
Corp IT
departments
Profit-maximizing
companies

7. Traditional software development: waterfall methodology
• Maintenance: OPEX
Post-production Phase
• Coding: CAPEX
Development Phase
•R&D: OPEX
Evaluation Phase

8. Rule bender #1: agile
development
• Agile approaches help teams
respond to unpredictability
through incremental, iterative
work cadences and empirical
feedback.
• The lines between evaluation,
development, and post-
production phases are blurred.

9. Rule bender #2: the
cloud
With the evolution of cloud
computing, the lines have
blurred between software
ownership vs rent.

10. Rule bender #3:
“dogfood” projects
Dogfood projects blur the line
between “internal use” vs
“software for sale” which have
some accounting implications.

11. Rule bender #4: Software and
other technology integration
Many new technologies even
integrate software and hardware
into a single end product, such as a
mobile telephone, where the
physical handset is virtually
inseparable from its underlying
operating system and apps.

12. What is Fixed Asset Connect?

13. Intuit and the long-
term future of
QuickBooks
Fully 80% of the new customers
to QuickBooks Online are first
time users.
These people expect to be
online and using their mobile
devices, and that isn’t the
desktop product.
Charlie Russell,
AccountexReport, Feb 9, 2017

14. Internet of Things (IoT) and
cloud accounting integration
• QuickBooks Connect 2016 hackathon brings IoT
developers to integrate with QB Online
• IoT partners who participated in QB Connect 2016:
• JIBO: a social robot and platform for developers to build skills
(robot applications) that leverage the power and creativity of social
robotics. Jibo hears, sees, relates and interacts
• Amazon Echo
• Oculus Rift
• Apple Watch / Android Wear
• Myo Armband
• RFID Reader
• Raspberry Pi, Arduino Kit, Sphero

15. AI and machine learning will transform accounting and
fixed asset management

16. Benefits of fixed asset
out-of-box solution
no implementation with
built-in templates and
back-end automation to
save time and minimize
errors
• One solution centered around fixed assets:
• Accounting
• Analytics
• Maintenance
• Documents
• Built-in templates:
• Asset group useful life
• General ledgers and journal entries
• Fixed assets reporting
• Back-end automation service:
• Depreciation and maintenance scheduling
• Email notifications
• Flexible customizations
• Support workflows & multi-users collaboration

17. Eliminate ghost assets and zombie assets
• Definitions:
• A ghost asset is a fixed asset in a general ledger (GL) that
cannot be accounted for because it is physically missing or
otherwise rendered unusable.
• A zombie asset is a fixed asset that do not appear on your
books, but are present in your office, warehouse, factory,
etc.
• Ghost assets typically account for 15% of total PP&E balance.

18. Be confident that your books and depreciation
calculations are accurate
Book
•Internal
•Tax
Method •Straight Line
•Double
Declining
Balance 150% /
200%
•Sum of Year's
Digit
•Unit of
Production
•MACRS
Convention
•Full Year
•Full Quarter
•Full Month
•Half Year
•Half Quarter
•Half Month
•Next Month
Frequency
•Monthly
•Quarterly
•Yearly
Classification
•Land
improvements
•Building
•Equipment
•Vehicles
•Fixture
•Furniture
•Computers
•Software

19. Easy Integration
with QBO
• General Ledgers
• Journal Entries
• Customers & Vendors
Information

20. Track full lifecycle fixed asset accounting
• acquisitionBeginning
• depreciation
• revaluation
• split
• transfer
Middle
• sell
• disposeEnd

21. Dashboard: collates fixed assets info on a single page
Expense
Charts
Depreciation
expense
Repair &
maintenance
expense
Asset
Charts
Assets count
Net book value
Accumulated
depreciation
Loss on disposal
Gain/loss on sale
Activity
Charts
Acquisitions count
Dispositions count
Splits count
Transfers count
Revaluations count
Analysis
Charts
Depreciation-to-
net book value
Accumulated
depreciation-to-
acquisition value
Average age
Repair &
maintenance
expense-to-fixed
asset ratio

22. Maintenance: minimize the true cost of fixed assets ownership
with preventive maintenance scheduling
Maintenance
classes
• link to fixed assets or
asset group
Maintenance
plans
• create preventive
maintenance
schedules
Maintenance
tasks
• add repair &
maintenance cost
for each task
Maintenance
orders
• request and approve
maintenance orders

23. Document module: disaster recovery &
digital assets storage

24. API integration: connect your data with other cloud software
through secured machine-to-machine communication

25. URL: https://faconnect.com/
Email: info@faconnect.com
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