Fixed Asset Registers

In this article we explain what a Fixed Asset Register is, how to prepare a Fixed Asset register and the benefits of keeping an up-to-date Fixed Asset Register.

What is a Fixed Asset Register?

A Fixed Asset Register is a schedule that identifies all of the fixed assets within a company and summarises any depreciation incurred.

In the Fixed Asset Register, you will normally find information about the assets such as:

  • What it is and also the type of asset it is
  • The location
  • The purchase price of the asset
  • The date of the purchase of the asset
  • Expected life of the asset
  • The depreciation method for the asset
  • the depreciated value of asset after a certain period
  • The Net Book Value of the asset

How can you keep a Fixed Asset Register?

Most businesses historically maintain their Fixed Asset register using spreadsheets, however over the past few years, it has become much easier to maintain the Fixed Asset Register using your accounting software. This enables more accurate depreciation calculations and also minimizes the risk of human error.

Either way of maintaining the Fixed Asset Register is sufficient, the important factor is that whichever method is used, it is updated on a regular occurrence.

Why keep a Fixed Asset Register?

There are many benefits to maintaining a Fixed Asset Register, these include:

  • Identifies the total number of assets owned by the company, the location and the age of those assets
  • Helps the company to meet and comply with statutory requirements
  • Assists in the physical verification of assets
  • Makes sure that the balance sheet indicates an accurate fixed asset value
  • Aids in calculating the annual depreciation
  • Helps prevent the theft of assets
  • Helps evade the duplication of assets
  • Assists in determining the value of the business

 

A Fixed Asset Register for a business is a vital way that a company can keep track of the fixed assets owned and ensure that the accounts accurately reflect the value of those assets.

If you would like to discuss the process of maintaining an up to date Fixed Asset Register, contact us on 01480 596636 or at admin@ajs-accountants.com.

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