Fixed Assets Manager™
- Fixed Assets Manager™ Unrivaled Flexibility
- Fixed Assets Manager™ Outstanding Tax Comprehensiveness
- Fixed Assets Manager™ Complete Financial & Tax Reporting
- Fixed Assets Manager™ Straightforward Integration
- Fixed Assets Manager™ Superior Support
- Fixed Assets Manager™ Canadian Tax Module
- Fixed Assets Manager™ Vertex Income Tax Integration
FIXED ASSETS MANAGER SUPPORTS CANADIAN TAX DEPRECIATION
Small and medium Canadian enterprises can now experience the benefits of Fixed Assets Manager™. Designed initially to support Arthur Andersen’s internal U.S. tax 
practice, Fixed Assets Manager™ provides comprehensive tax features and calculations along with straightforward navigation, designed to simplify daily fixed asset management tasks. As a part of this enhancement, all Capital Cost Allowance (CCA) class rules and rates are maintained by Red Moon Solutions, removing the burden of staying compliant for companies. Read on to learn more about CCA and how Fixed Assets Manager’s features and benefits can power your tax strategy.
practice, Fixed Assets Manager™ provides comprehensive tax features and calculations along with straightforward navigation, designed to simplify daily fixed asset management tasks. As a part of this enhancement, all Capital Cost Allowance (CCA) class rules and rates are maintained by Red Moon Solutions, removing the burden of staying compliant for companies. Read on to learn more about CCA and how Fixed Assets Manager’s features and benefits can power your tax strategy.BACKGROUND: CANADIAN TAX
For Canadian tax purposes, the depreciation of capital assets, such as buildings and equipment, is governed by the “Capital Cost Allowance”. Under this system, capital assets are grouped into classes and a calculated portion of the expense can be deducted annually against each class in accordance with the rate 
prescribed for each class. This continues over a period of years as the property or the equipment depreciates.
prescribed for each class. This continues over a period of years as the property or the equipment depreciates.The amount of Capital Cost Allowance that can be claimed each year depends on when the property was acquired and to what CCA class it belongs. Canadian legislation sets out more than 40 classes of assets and their associated CCA rates, which are expressed in percentage terms.
The Fixed Assets Manager™ Canadian Depreciation module provides the ability to calculate the depreciation values for these 40 pre-defined CCA classes. Calculation data is drawn from assets placed in service or disposed of during the current accounting year.
CANADIAN TAX STRATEGY: AN OPPORTUNITY
Capital Cost Allowance, essentially being a non-cash deduction from income that would otherwise be subject to taxation, should be thought of as a tax strategy that can be used to significantly impact your company’s cash flow. For example, many business owners are not aware that they do not have to claim Capital Cost Allowance in the year that it occurs; rather they can use as much or as little of the allowable CCA claim in a particular tax year. Any unused portion can be carried forward to help offset a larger, future income tax bill. Since CCA affects the net income of a business, optimal usage of the CCA rules
is essential for all business decision-makers.
STRATEGIC TOOL: FIXED ASSETS MANAGER FEATURES AND BENEFITS
Fixed Assets Manager is easy to use and includes a large selection of reports, including projections, to support both book depreciation and tax depreciation under both US and Canadian regulations. The Fixed Assets Manager Canadian Depreciation module allows you to:
- Create user-defined tax classes, if necessary
- Identify the tax class to which assets belong
- Sum the book cost of assets placed in service in the current tax year for each tax class
- Sum the proceeds from the disposition of assets for each tax class in the current tax year
- Calculate current year tax depreciation allowable for each tax class
- Print depreciation reports for the tax classes
Contact us today to learn more or schedule a free demo!
