All businesses need to keep a fixed asset register that will serve as a centralized receptacle for information about their entire asset holdings, broken down into purchase price, acquisition date, location and description.
By using fixed asset software, companies can store all this information in one place, rather than having to deal with multiple spreadsheets or, even more confusingly, a plethora of paper files. The convenience of having this data at your fingertips can save time and money, not to mention the stress of hunting down a piece of equipment that isn’t where you thought it would be.
In addition to increased convenience, using software to keep a comprehensive fixed asset register also makes things easier when it comes to preparing your annual accounts. Specifically, you can quickly pull together a list of relevant purchases, sales invoices or other documents without having to spearhead an exhaustive search. The cost of purchases can be written off over time using depreciation, so it’s important to have all your asset information in order so that the best possible depreciation rates can be achieved.