Fixed Asset Register
A fixed asset register is an accounting tool used to store and manage an organization's list of fixed assets (e.g. computer and office equipment, vehicles, land, buildings, etc.), which typically consists of items held for the purpose of production of goods or performing services, not used for the purpose of sale. Quite simply, a fixed asset register is a detailed list of fixed assets.
Fixed asset management is an accounting process used to track fixed assets for the purpose of financial accounting (depreciation). Many companies also elect to track the whereabouts, quantity, condition and maintenance records relating to fixed assets for tax and insurance purposes.
From a purely operational standpoint, having an accurate asset register that shows location, condition and the responsible contact can help ensure that assets are available and usable when needed. But how a business manages its assets also has multiple effects on the entity's finances, through the very tangible costs of heightened insurance premiums, property taxes and neglected depreciation. These areas cannot be effectively addressed without a specialist fixed asset management solution. Organizations that are using cumbersome spreadsheets to manage an ever-growing asset register constantly struggle to address a variety of issues surrounding the accountability and traceability of their asset base.
The following are just some of the many areas in which businesses, without a comprehensive fixed asset management system, are failing to address:
- Corporate governance requirements (SOX, CSOX, US Tax, GAAP, SAS 70, IFRS, etc).
- Inaccurate depreciation calculations.
- Lack of an audit trail and overall security.
- Inability to link 'parent/child' assets or conduct asset splits, batch disposals, etc.
- Access to multi-currency, multi-lingual or multi-book capabilities.
- Unable to meet historical reporting and forecasting requirements.
- Wasted time on tedious tasks such as data entry.
- Lack of confidence in data integrity.
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