Specialized fixed asset accounting software enables quick and simple depreciation calculations while eliminating the use of adding in formulas. The software already includes preloaded formulas which allow users to adjust depreciation methods for both fixed assets and fixed asset lives using default settings for specific books as determined by the asset category.
Using a proper fixed asset accounting system to calculate depreciation this way eliminates the risk of formula errors that cumbersome spreadsheets bring with them. With the technology available to automate this process, having spreadsheets or an outdated legacy system is a risk that just cannot be justified nowadays.
Not only does a proper fixed asset accounting system reduce the margin of error and increase efficiency, it can also forecast future depreciation at any particular date ahead and also recalculate depreciation for a current period so that any updates to the fixed asset register are reflected.