IN THIS CHAPTER
Assigning assets to the Fixed Asset Register and understanding depreciation
Working with Xero’s Fixed Asset reports
One of the first work projects I undertook was a fixed asset audit. I was given a list of assets, and told to find them and update their status. It was like a game of hide and seek. I made my way around the various buildings, searching for the assets and checking them off the list. I searched high and low for one particularly asset and, eventually, found it in an unopened wooden box under a table. It had never been used and no-one even knew what it was for — it just arrived one day and slotted itself under the table and into the Balance Sheet, absorbing valuable cash. Perhaps not the wisest of investments!
In this chapter, I cover Xero’s Fixed Asset Register and explain how you can use it to keep track of fixed assets and depreciation through the year.
A fixed asset is an asset that has an expected life of more than a year. It is a significant investment for any business because it utilises cash that could be used elsewhere in the business. This is why maintaining an accurate Fixed Asset Register is so important for your business. Typical small business fixed assets include cars, buildings, ...