Managing Your Assets Register

Managing your Assets Register is one of the basic bookkeeping tasks that you will have to master as a new small business owner.

A Definition

An assets register is a list of all of the fixed assets owned by your small business, and includes details of when the asset was purchased, the purchase price and the useful life of the asset.

If you are using an accrual accounting or double-entry bookkeeping system for you business, the asset register also provides the raw data for calculating your annual depreciation expenses.

Recording Your Assets

Before we get started, download and print off a copy of this fixed asset log form.

For each asset that your business currently owns, enter a descriptor for the asset in the Asset purchased column. The descriptor should contain sufficient information for you to be able to identify which asset the entry relates to. For example, the descriptor for a vehicle might include the make and model plus the registration number of the vehicle.

Enter the date of purchase and the price paid to purchase the asset. The % used for business column is used for any assets that are for both business and personal use. For example, if you have a computer that is used to keep the accounts for your business but it is also used by you and your family for recreation or study, only a portion of the depreciation on the asset is included in your business accounts. Estimate the percentage of the usage that relates to the business and enter the percentage into this column.

The useful life column is used to record the useful life of the asset. Usually electronic equipment will have a useful life between 3 - 5 years, and the useful life of other equipment can be anything between 5 -15 years. For guidance on the useful life of classes of assets, check with the taxation department or agency in your jurisdiction.

The next column is used to record the depreciation method for the asset. The two main methods used are straight line and diminishing value.

What To Do When You Sell an Asset

When you sell an asset you need to record the details of the sale on your fixed asset log. Scan the entries on the log and locate the record for the asset in question.

Then you can record the date of the sale and the amount you receive from the purchaser in the final two columns of the form.

What's Next?

Now that you know all about managing your assets register, you might like to check out some other basic bookkeeping tasks.

• Recording your petty cash transactions,
• Recording your expenses,
• Recording your sales,
• Doing a Bank Reconciliation,
• Tracking your customers accounts, and
• Tracking your creditor accounts.

	Enter your search terms Submit search form
	Web www.how-to-start-a-small-business.com

Return to top of Managing Your Assets Register

Return to top of How to do Bookkeeping

Home | Privacy Policy | Contact