An asset register is a record that of the assets owned or controlled by a business. An asset register assists business owners to keep track of business assets that are used regularly to produce business income, and unlike other assets such as inventory, fixed assets are not considered products to be sold. An asset register allows the business owner to keep track of assets and to provide a fair estimate of their worth.
A well structured asset register provides a single location to quickly learn about the assets owned by a business.
Asset registers keep track of all fixed assets and the details surrounding each asset. It shows the description of the asset, the purchase date, the purchase price, suppliers name & address, serial number, an internal reference number, a depreciation rate & method, the location of the asset, insurance details, accumulated depreciation, date of disposal and any gains or losses on disposal.
In order for a fixed asset register to be successful, the information contained therein must be accurate, complete, and comprehensive. Thus it is essential to make sure all assets are included in the register.
Most companies use a software program specifically designed to track fixed assets. A software program will organise organize the asset register and is uniquely designed to allow accountants the ability to track each item. An asset register will provide a fair estimate of the worth of each asset and will assist business to meet their taxation, statutory and sale of business obligations.