Fixed Asset Register

Introduction

Recording assets seems like a very straightforward idea, but so many systems have either no scope for this or, have a fixed asset module which is a list of assets, with no detailed information. 

Cloud accounting allows the recording of assets in a structure that makes sense for each organisation, supported by powerful reporting and automation of depreciation associated with these assets.

Typical Problems

So many accounting systems do not allow for the recording of fixed assets, requiring this to be done out of the system, on a spreadsheet. Where there is an asset register in the system, there is often no way of linking an asset directly to the purchase invoice associated with it. This can lead to the need for double recording.

There is also often no ability to add a detailed structure for an asset, which can lead to the recording of a group of assets as one. This can cause challenges later, for example, if an item is damaged and needs to be written off, but it is recorded as a single entry with others.

Solution
Cloud accounting solutions provide a detailed asset register, pulling through cost prices, and current list prices and automating depreciation monthly, removing the need for offline documents and manual updates.  The ability to link the asset to an invoice associated with the purchase gives wider scope for reporting and historical analysis.

Assets in cloud systems can have custom structures, allowing the user to record a group of assets, or to set up a hierarchical ‘parent & child’ relationship between assets, in a way that allows an individual item to be removed later, for example, if it becomes damaged or is sold.

Asset history is preserved in the system, so the depreciation, purchase, sale and write-off can be reviewed for an asset.

Benefits
With a detailed fixed asset record, cloud accounting systems can reduce the need for manual updates and offline activity to produce accurate valuations, track stock locations and generate reports. Teams are empowered to automate depreciation, link assets to invoices for ease of reference, and move assets in and out of groups while still preserving the history of relationships and depreciation.