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What is the role of a fixed assets register within Fixed Assets Management?

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The creation and maintenance of a fixed asset register is perhaps the first important step toward a sound fixed assets management approach, but it’s not a quick process. A good fixed assets register will include a detailed listing, valuation and depreciation schedule for all of your fixed assets, so you first have to identify and list your fixed assets. An accurate description of the fixed asset is of course important, but there are a number of other identification factors you should include. The identification tools listed below are far from an exhaustive list for a fixed assets register, but they should give you an idea of the desired specificity:

• Location: Where exactly is the asset located?

• Initial cost: What did you originally pay for the asset?

• Vendor: Who sold you the asset?

• Scheduled maintenance: When and how much will it cost?

• Depreciation schedule: How will you depreciate the asset?

The development of an accurate fixed assets register not only allows you to easily reference the specifics of your various fixed assets, but also grants you greater control over those assets. Furthermore, accurate reporting of certain types of fixed assets is required by law, so you’re less likely to find yourself in non-compliance if your fixed asset management system includes a well-maintained fixed assets register.

Different business use different techniques in order to track their fixed assets and list them in a fixed asset register, but the use of serial numbers is a common and effective approach of identification and monitoring. For instance, a piece of plant machinery may have its number engraved upon it for easy identification. In that same vein, bar-coding has proven increasingly popular in recent years. The asset is issued a serial number of some sort, which is then placed on the asset in a fashion that allows it to be easily tracked through the use of a hand-held recognition device.

Next Page: How does depreciation work in Fixed Assets Management?

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