A fixed asset register can exist in many forms ranging from a manual paper based record or an Excel™ spreadsheet, through to more sophisticated fixed asset management software solutions.
Items and information captured in a fixed asset register
Fixed assets are longer term investments which provide value to a business and are depreciated over a period of years.
Below are some typical examples of fixed assets that would be recorded on a fixed asset register:
- IT equipment such as computers, laptops, printers, and servers
- Office equipment such as photocopiers, scanners, and telephones
- Property, plant, and equipment (PPE)
- Fleet i.e. cars and vans
Organizations have the flexibility to capture as little or as much detail required for each asset. Storing detailed asset information and financial history provides valuable data to enable more informed decision making.
Typical information captured on a fixed asset register includes a unique identifier code, asset name, description, purchase and capitalization dates, purchase cost, department, cost center, residual value and asset life, and depreciation rule.
The benefits of creating and maintaining a fixed asset register
It is essential for an organization to maintain an accurate asset register to provide knowledge as to where an asset is and in what condition it is in. Listed below are just some of the key benefits which can be achieved from getting a fixed asset register in place:
- Provides complete information on asset status, history, and location for audit trail purposes.
- Assists in complying with statutory requirements such as US GAAP and SOX.
- Ensures that the balance sheet reflects an accurate fixed asset value.
- Provides an accurate reference to ensure that the appropriate level of insurance is in place, which in turn avoids the overpayment of insurance premiums.
- Facilitates a quick and easy asset audit and verification process.
- Simplifies month and year-end processes when asset data is up to date.
- Improves asset utilization across the business and avoids the duplication of asset purchases.