Here at AssetAccountant™, we have seen many implementations of the fixed asset depreciation software.
We have had requests for guidance on practical issues involved in implementations and thought this would make a great blog to share with anyone considering implementing AssetAccountant™.
Or any new fixed asset register for that matter…
AssetAccountant™ is free to use or trial (ALL features)
for up to 10 assets
Things to think about when you address fixed asset registers:
- How will the new system fit with your accounting system?
- Are you going to need to develop new processes or procedures around sign-offs or what you do at month end, for example?
- Do you think you may have some assets not previously treated correctly? How do you plan to deal with these?
- Is this a time to reconcile and remove fully depreciated or physically missing assets?
- Should you do a full audit of your fixed asset register? How will you fix legacy errors?
- When is the best time to implement a new fixed asset system?
- Have you been running tax=accounts for depreciation? Is it now time to take the huge advantage of reporting both methods?
From the initial contact with the team at AssetAccountant to the final implementation, we have received prompt and positive responses. The effective support service and continuous improvement makes AssetAccountant a product highly recommended to a wide variety of industries as well as to accounting firms.
Marco Abril - Financial Controller, TPM Builders
Look out for:
- Assets which have been over or under depreciated
- Negative written-down-values or opening balances
- Missing or clearly wrong fixed asset depreciation rates
- Assets which simply do not exist in the business anymore
- Assets in the wrong asset class (asset groups)
- Assets being allocated the wrong cost-centres (classifications)
- If data is coming out of other systems or even Excel for that matter, ensure tax and accounts data is at the same opening balance date
- Check asset codes and descriptions and are up-to-date and matching the intended assets.
- Do you have attachments or links you need to add to assets? E.g. warranty and/or purchase documentation
- Missing assets – and adding those which can be capitalised
When is the best time to implement a new fixed asset register?
The scenarios under which you might implement a new fixed asset register can broadly be split into two being:
(1) as part of a bigger change to your accounting system and
(2) an independent exercise to upgrade management of fixed assets and depreciation
Under scenario 1, the timing of implementing your new register will be determined by the business and the need to clean up your fixed asset data and design your new register.
The first step will be to decide if the native register in the underlying system is fit for purpose or whether you need a third party add on because you have a lot of assets or complex requirements in relation to them.
If you are implementing a new fixed asset system outside of a wider upgrade (scenario 2) then you will need to decide the best time.
Often the point in the year at which you realise you need a new way to manage depreciation is at the time when you are in the midst of your busiest period (EOFY for example – end of financial year).
Happily, AssetAccountant™ can take up your opening balances at any time during the year, and our Import engine gets you up and running in seconds.