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Money Forward Unveils New Compression Accounting Feature

Money Forward Inc. has made a significant enhancement to its Cloud Fixed Assets platform by introducing a new feature that allows users to implement compression accounting via a straightforward process. This feature is designed to streamline the handling of fixed assets and provide businesses with an efficient way to manage their expenditures, especially when dealing with subsidies or grants received during asset acquisition.

What is Compression Accounting?

Compression accounting is a financial method that allows businesses to defer the benefits received from subsidies or grants associated with the acquisition of fixed assets to future periods. Essentially, this means that a company can reduce its tax burden in the initial year of asset acquisition, translating into enhanced cash flow management. By offering this new capability, Money Forward aims to simplify the complexities surrounding this accounting practice.

Overview of the New Compression Accounting Feature

The new feature integrated into Money Forward's Cloud Fixed Assets enables users to record the 'compression amount' of assets directly during the registration process. When entering asset data, users can now input relevant subsidy figures directly into the fixed asset registration screen. This data is subsequently available for review in the fixed asset ledger, including vital metrics such as the subsidy amount, net acquisition cost, compression amount, and post-compression acquisition cost.

To implement this feature, users need to follow a simple two-step process:
1. Navigate to the 'Fixed Asset Ledger' screen and click on the 'New Registration' button, then fill in the necessary details like asset name, acquisition date, and acquisition cost.
2. Input the subsidy amount and verify any automatically calculated figures regarding acquisition and compression amounts before hitting the 'Register' button.

This straightforward approach not only minimizes manual labor but also significantly reduces the risks of errors in calculations and records, thereby enhancing the overall operational efficiency of the accounting team.

Integration with Tax Reporting

One notable benefit of the compression accounting feature is its direct integration with corporate tax filings. It ensures that relevant figures related to the compression accounting are reflected in the required tax documents, specifically in the additional report schedules for corporate tax return submissions.

What is Money Forward Cloud Fixed Assets?

Money Forward Cloud Fixed Assets is a comprehensive asset management system aimed at professionals involved in asset management operations. It covers everything from the acquisition and transfer registration of fixed assets to depreciation calculations, accumulation of increases and decreases, automatic bookkeeping entries, and submissions for fixed asset tax declarations. Given its cloud-based system, it offers real-time connectivity across departments including administration, IT, and even onsite locations such as factories and branches, facilitating seamless management of physical assets.

With advanced logging features, the system adheres to internal control requirements, thereby addressing tax and accounting discrepancies that can occur during multi-ledger management.

For more information about the Money Forward Cloud Fixed Assets, visit their official page at Cloud Assets Site.

About Money Forward Inc.

Founded in May 2012 and headquartered in Shibaura, Tokyo, Money Forward is dedicated to providing top-tier platform services to enhance financial management for businesses. Led by CEO Yosuke Tsuji, the company continues to innovate and improve financial processes for its users. For more details about the company and its services, visit Corporate Site.