The FIXED ASSET REGISTER page

By law it is required for all companies to maintain an up-to-date register of their assets (fixed asset register).

Although this is a legal requirement, it is in the company’s own interests to maintain an up-to-date asset register. There is a very long list of benefits, which are only realised once they start using it.

An asset register is really a very simple thing, and maintaining it is just as simple, if worked into the company’s normal business workflow. Calculating depreciation (for both Tax / wear and tear, and separately also for Financials) is just as simple. The only problem is once the asset register grows, it starts to become very complex and time consuming. This is when you want to be using a robust, powerful, and well supported software package!

An asset register can be used to:

· Maintain a list of all assets (active and disposed)

· Calculate depreciation (both for tax and financial)

· Record location of the assets

· Record assets that are booked in or out (e.g.: to staff, clients, etc.)

· …



Depreciation can be calculated by different methods:

· Reducing balance method

· Straight-line method

· Units of production



The straight-line depreciation method is the simplest and the most common.



All assets must be grouped into categories (e.g.: computer hardware, furniture, vehicles).

These categories and their respective allowed rate of depreciation are defined by every countries tax authority.