Fixed Asset Accounting
Simplify fixed asset management: add, track and monitor assets, record depreciation expenses, and manage asset disposals with ease. Generate asset-related reports and manage asset lifecycles with detailed asset information at your fingertips
Keep track of asset location and condition. Monitor depreciation in real-time. Automate purchase and sale of assets. Streamline the asset transfer process. Track asset-related expenses. Generate reports for tax and accounting purposes. Receive reminders for periodic maintenance and insurance renewals. Leverage analytics to maximize the return on your investments.
Finance teams can accurately track assets including purchase date, purchase price, depreciation, and current value, and book depreciation automatically to ensure accurate and up-to-date records of their fixed asset inventory.
Automate tracking of all assets from acquisition to disposal.
Keep accurate records of depreciation and other asset-related costs.
Minimize manual data entry, reducing risk of errors.
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Key Features of Fixed Asset Accounting
with Deskera ERP.
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Deskera Fixed Asset Accounting
What is fixed asset accounting?
Fixed asset accounting is a method of tracking and recording the costs associated with an asset that will be used over a long period of time. It typically includes the purchase price, associated taxes, shipping costs, installation costs and other expenses related to the asset. It is important for businesses to accurately track these costs in order to properly determine their financial position and performance.
What are the main components of a fixed asset accounting system?
A fixed asset accounting system typically consists of four main components. These are asset acquisition and disposal, depreciation calculation, asset tracking, and reporting. The acquisition and disposal component is responsible for recording the purchase and sale of fixed assets, while the depreciation calculation component is responsible for determining the amount of depreciation to be taken on the asset. Asset tracking ensures that the asset is properly recorded and tracked, while the reporting component provides the necessary financial information to management and other stakeholders.
How is depreciation calculated?
Depreciation on a fixed asset is typically calculated using one of three methods: straight-line, declining balance, or sum of the years’ digits. The straight-line method calculates depreciation by taking the purchase price of the asset and dividing it by the estimated useful life of the asset. The declining balance method calculates depreciation by taking the remaining balance of the asset and multiplying it by a predetermined rate for each period. The sum of the years’ digits method calculates depreciation by taking the purchase price of the asset and subtracting it from the estimated salvage value, then dividing the difference by the sum of the years’ digits.
What is the difference between capital assets and fixed assets?
Capital assets are long-term assets that are intended to be used in the production of income, while fixed assets are assets that are used in operations, but are not intended to produce income. Capital assets typically have a longer useful life and higher purchase price than fixed assets.
How are fixed assets tracked?
Fixed assets are typically tracked using asset tags or barcodes. Asset tags or barcodes are affixed to the asset and used to identify the asset and track its location. This helps to ensure that the asset is properly accounted for and tracked.
What are the benefits of fixed asset accounting?
Fixed asset accounting helps businesses to accurately track their assets and costs associated with them, which provides them with a better understanding of their financial position and performance. It also helps to ensure that assets are properly maintained and can be used to their fullest potential.
What are the differences between tangible and intangible assets?
Tangible assets are physical assets such as buildings, equipment, and vehicles, while intangible assets are non-physical assets such as patents, copyrights, and trademarks. Tangible assets typically have a longer useful life and higher purchase price than intangible assets.
What is the difference between fixed assets and current assets?
Fixed assets are assets that are used in operations, but are not intended to produce income, while current assets are assets that are expected to be converted to cash or used up within one year. Fixed assets typically have a longer useful life and higher purchase price than current assets.
What is the difference between a capital asset and an operating asset?
A capital asset is a long-term asset that is intended to be used in the production of income, while an operating asset is a short-term asset that is used to produce or facilitate the production of goods and services. Capital assets typically have a longer useful life and higher purchase price than operating assets.
How is the value of a fixed asset determined?
The value of a fixed asset is typically determined by the cost of acquisition, plus any costs associated with installation or transportation. The useful life of the asset and the estimated salvage value are also taken into account when determining the value of the asset.
Use Cases
