Too many businesses overlook the importance of a fixed asset register, and leave the numbers up to the accountant for compliance purposes.

However, a current and accurate fixed asset register is a vital tool for businesses. It plays a key role in both short and long term planning as well as maintaining compliance.

What is a fixed asset register?

This is a record of business assets including property and buildings, improvements, plant and machinery, office equipment, vehicles, software and intellectual property, among others.

It lists not only the item itself but the acquisition cost, the date of purchase, its estimated useful life span and its estimated value at that point, annual depreciation and the location of the asset.

A current and accurate fixed asset register far exceed the benefits of on-paper compliance.

Indeed, correct calculations can certainly maximise tax deductions as well as your business valuation. However, these numbers are also essential for accurate market and insurance valuations. An insurance claim can go wrong very quickly based on out-of-date asset details, or simply because of poor record keeping.

A comprehensive asset register also allows you to keep track of fixed assets that may not be under your direct control. For example, leased assets, assets under construction or imported assets should be reflected in your register.

Business planning, tax compliance, insurance requirements, succession planning, business valuation, and accurate forecasting all rely heavily on a current – and accurate – asset register.

The Property Partnership specialise in asset valuations, as well as property, business, and plant valuations. Why not give us a call and let us assist you in keeping your fixed asset register current. Call us on 0860 999 440.