Company Law requires that you keep a register of your business’ fixed assets as part of its accounting records. However, managing your company’s fixed assets can be tedious and time-consuming. Fixed assets are physical items such as desks, computers, cars, machinery, etc which you acquire to run your business. As you use assets, they depreciate or become obsolete. You can legally expense depreciation in your accounts for tax purposes.
Managing your fixed assets includes the following tasks:
- Tracking each asset’s value, both from a tax and an accounting point of view
- Depreciating assets correctly using an appropriate depreciation rate and method
- Updating the replacement values of your fixed assets for insurance purposes
- Accurately recording any sale, disposal or loss of assets
- Maintaining an accurate fixed assets register which records information such as date of purchase; date of disposal; purchase price; accumulated depreciation; net book value etc.
The Sage Evolution Fixed Assets module automates all these processes for you. Once you provide the initial information, the system takes over and manages your assets for you. One of the realities of fixed assets processing is that companies frequently change depreciation rules as legislation allows and as company policy changes. Some changes are retroactive to when you purchased the asset. Sage Evolution Fixed Assets calculates its values dynamically from the start of each asset’s life, which makes retroactive changes simple. Imagine the time required to accurately programme all this yourself into a spreadsheet!