Preparing for an Equipment Appraisal
If you have not had your business’s equipment appraised before, you may be wondering what steps you should take as the business owner to prepare. For many southeast Michigan business owners, this can be a big task, and for others, it can be a very simple task. It’s important that you fully prepare for your equipment appraisal, so that we can give you the best possible results for our efforts and your money. Here are a few hints for how you can prepare for your upcoming equipment appraisal.
Prepare Your Asset List
This is the most important part of your equipment appraisal. Having a complete list of all of your assets will allow your appraiser to have a full understanding of the scope of work that they will be completing for your company. Your asset list should be as detailed as possible for each piece of equipment. You should provide as much of the following as possible:
- Item Name
- Location of Item
- Serial or VIN number
- Year of Purchase
- Cost to Purchase
- Current Depreciation Amount
- Item Tag Number
- General Specifications
This list will provide your appraiser with the basic information that they need to begin your equipment appraisal. It is also helpful for your appraiser if each of these lists also includes a picture of the item. This list is most useful if you compile it using an excel spreadsheet. That way it can also be shared with your banker, accountant and insurance agent.
You’ve already compiled a list of general information for each piece of equipment in your asset list. Many appraisers find that it is helpful to also have other pertinent records about the equipment, as well. If you have maintenance and run time records for your equipment, make sure that you provide copies of these documents for your appraiser as well. This information can be helpful in determining useful life and giving a more accurate valuation of your equipment. Machines that are not maintained well, or do not have good records to support maintenance may have a shorter useful life, which means you may not get the price or value you’re looking for.
Prepare your Equipment
If you are having an on-site appraisal, you will want to do some work to get your equipment ready. Make sure that your equipment is clean and free of dirt and grime that may hide defects or make the equipment look worse than it is. Clean equipment will appraise better in many cases because it is easy for the appraiser to see what the body of the equipment looks like. If your equipment is well cared for on a regular basis, this shouldn’t mean much extra work for your staff.
Being well prepared for your equipment appraisal is the first step to getting the best results from your certified appraiser. Whether you are having an onsite appraisal or you’re sending info to your appraiser for an off-site appraisal, keeping good records and an up-to-date list of your equipment will only benefit you in the long run.
I Want More Information on Preparing for An Equipment Appraisal in Michigan!
R Stout Appraisers can provide your business with quality, certified equipment appraisals, no matter what the need. Whether you are looking to buy or sell equipment or need to create a business valuation for a loan, our expert appraisers know just want your business needs. To schedule an equipment appraisal or to learn more about our equipment appraisal services, please call us today at (248) 978-8338.