The Benefits of a Fixed Asset Register

The importance of maintaining an accurate fixed asset register is sometimes overlooked by small business. Keeping a up to date and accurate fixed asset register not only assists with ensuring compliance is correctly reported but it can play a very valuable role in assisting businesses with short- and long-term planning. In addition, it is important to keep a fixed asset register as it allows businesses to keep track of the book value of assets and their depreciation over time.


What Is a Fixed Asset Register?

A fixed asset register is an item listing of all fixed assets owned by the business which can include details such as what the assets is, where it is located, purchase price and date, useful life of the asset within the business and expect value at the end of its useful life and is used to summarise both accounting and deductible taxation depreciation expense.

It may take the form of a simple excel worksheet or be integrated with accounting software. Whatever the form, having all the numbers you will need to calculate depreciation and end of year reports will simplify this task.

Most small business owners don’t review or spare a thought for the assets being listed in their asset registers and just leave it to their accountants to ensure that they are compliant for tax. However, an asset register can serve other use purposes aside from ensuring compliance records are maintained.

Advantages of maintaining an accurate and up to date fixed asset register.

Assets are fundamentally what business use to derive income, meet debt, retain customers/clients and grow wealth. Fixed assets include land, buildings, machines, office equipment and furnishings etc, and effective and efficient fixed asset management will contribute to the ongoing success of any business.

There are many reasons why the asset register is a useful control tool for fixed assets:


    • Keep record and track of the value and status of each asset your business owns
    • Simplify calculation of annual depreciation
    • Forecasting profits and cash flow regarding maintenance of assets, upgrading assets and replacement of assets
    • In order to obtain finance or at least the most finance possible to grow your business, financiers will generally require an up to date assets register
    • Used as a tool to stay on top of and try to prevent theft of assets
    • Succession/business exit planning and determining your business true value


Rarely will business owners be able to list every fixed asset they hold and there written down value especially the small ones, nor is there a need too, provided a fixed asset register is maintained. It is encouraged to review registers on an annual basis as a minimum to ensure they are reporting their assets accurately, maximising their deductions as far as obsolete or scrapped assets and maximising their business valuation.

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