A fixed asset register is a record of all the fixed assets that a company owns. An asset can include equipment, land or even trademarks or copyrights. It is a legal requirement that all limited companies keep a record of fixed assets.
The assets include buildings, equipment, vehicles, and fixtures and fittings.
What records do I need to keep?
The fixed asset register should be broken down into the different types of asset and will need to include the following information:
- Purchase date
- Purchase price
- Location of the asset
It is also useful to keep the following information:
- Serial number
- Asset number if used
There may also be other information on the register, which you may find useful for your company.
You will need to add or remove and assets which have either been purchased or removed during the year. It includes assets which are broken, removed from the company or sold.
It is useful to keep a copy of any invoices with the fixed asset register; this will make it easier for the accountant at the year-end.
The register can also be used for completing your insurance form as a copy can be attached to your application.
Maintaining a Fixed Asset Register
There are several different ways to manage fixed assets; the options include:
- Fixed Asset software developed for the purpose
- Accounting software – which has it built-in, XERO is a good example
- Setting up an Excel template – we have a free template available
Fixed Asset Software
Larger organisations mainly use it due to the additional cost. If as a business you are looking to go down this route, it is best to look at reviews on the internet and take a trial of the software that is suitable.
There are advantages of using asset software, which includes:
- Being compliant for accounting purposes
- All asset information in one place
- Easy to complete an audit
- Most integrate with accounting software and will calculate depreciation
Asset Accounting Software
If you use an accounting software package, fixed assets may be included within the package. One package which I use and recommend is XERO, which has flexible fixed assets included. Xero is one of the top accounting software recommended by both bookkeepers and accountants. Below is a simple example of their fixed asset register.
The above example has three assets, shows an asset number, type of asset and the financial details.
It is easy to set up new assets; it doesn’t matter if they are computers, plant, machinery or equipment. You can include as much or little data as required. Our example below also consists of a location, making it easier to track and audit the equipment. There are different depreciation methods available, and the rate and number of years can be set for each asset.
Once the equipment is set up, it is easy to trace and work out the value as the depreciation as posted for you.
Fixed Asset Schedule Template Excel
The cheapest way to track the assets is to set up an Excel spreadsheet. We have two free fixed asset register templates to download.
The first Excel template lists all the assets, asset number, date purchased, purchase price, location and supplier. It is simple to use and allows you to delete or add further columns.
The second fixed assets register template includes the calculation for straight-line depreciation. On set up, you enter the details of the asset. How many years required for depreciation and how many months depreciation needed in the first year. The figures are then posted to the accounting software each year.
Below is an example of you simple to use asset depreciation spreadsheet.
Our second Excel spreadsheet is a simple to use fixed asset register. It enables you to record all the asset information, location, supplier, serial number, depreciation and value. If you want to add more columns the template is unlocked, allowing you to instert additional details.
By downloading the free templates, you agree to our licence agreement.
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