But our ERP has a fixed assets module...
We are sometimes asked the question:
Why should we use a third party fixed asset software to manage our fixed asset depreciation instead of our accounting system or ERP?Given a lot of such systems do have a native fixed asset module, it’s a fair question to ask and this article addresses some of the issues to consider. Before we get into the details, it’s worth outlining how a third party depreciation system is best set up. With the increasing availability of APIs as more and more businesses move to cloud-based systems, it is easy to transfer data automatically so use of different systems doesn’t cause the manual effort it once did. At AssetAccountant™, we integrate with a growing number of accounting systems and ERPs where we are able to automatically extract “draft assets” from the underlying GL or AP system that allows users to set their tax and accounts depreciation. Once this is done, AssetAccountant™ posts the journals back to the accounting system and/or reporting data into tax compliance systems so even those steps are automated.
AssetAccountant™ – saving you from spreadsheets since 2019
So, what are the advantages of using a dedicated system to manage your depreciation?
There are a wide range of scenarios that we see at AssetAccountant™, and we’ve given some examples of these further down below.
For our users who are faced with these requirements, the benefits that they get from using AssetAccountant™ include:
- No requirement to work on custom development within the core accounting system. Some larger accounting systems and ERPs are capable of custom development to meet user specific requirements. However, this work is often time consuming and requires a specific skill set which means it can be expensive. Further, custom development can cause issues with later updates and upgrades where these may not be compatible with the custom work that has been done.
- Avoiding ongoing maintenance of the accounting system. Even in the cases where an accounting system has been perfectly configured, requirements frequently change – this could be caused by a new business process, acquisition or updated tax rulings. In these scenarios, updating the custom configuration can add further ongoing material cost.Third party dedicated software can materially reduce this cost by providing coverage for all these needs as standard functionality.
- No need to resort to spreadsheets. In many cases, either when the accounting system cannot be customised or you encounter a scenario it can’t handle, there is often no choice but to adopt some form of spreadsheet use as a workaround to one or more limitations. Time after time, we see this happening and once a spreadsheet has been created for this purpose, it is very hard to then move back into the accounting system without a large scale project to undertake.
Why our clients love AssetAccountant™
Up until 2021 we had been using Excel spreadsheets to calculate and manage fixed asset tax depreciation for the group's registers, which was not sustainable. To address this and to implement automation of the process, we researched solutions offered in the market, including by the large accounting firms and specialist software providers. After thoroughly vetting AssetAccountant as a vendor, testing the software and its calculations, and reviewing the company’s data security, we committed to implement the software for all tax fixed asset registers for the Whitehaven Coal group. Since implementation we have been very satisfied with the decision. The software is intuitive, robust, easy to use, and accurate. AssetAccountant’s commitment to ongoing development of the product's features has also been impressive.
After being introduced to AssetAccountant in 2020 by PriceWaterhouseCoopers, I carefully reviewed the software's functionality to suit our complex fixed asset depreciation and lease accounting requirements. For example Buildsafe acquires, disposes and writes off thousands of assets including partial transactions. We also need flexible reporting and detailed journals. I have found the software to be enterprise standard, robust and precise. The software is a very elegant blend of beauty and smarts. The ongoing support, product development and assistance has been responsive and reliable. An amazing team and product. Thank you.
AssetAccountant (AA) has produced the ultimate Fixed Asset Management System. AA integrates seamlessly with Xero and produces reports that satisfies any auditor with easy to trace transactions that are verifiable. The real hidden gem is their Lease Accounting facility which takes all the heartache and time consuming issues out of AASB16.
Fantastic product - has literally saved me hours of work.
Fantastic product - has literally saved me hours of work.
We love using AssetAccountant. The time savings for every client’s depreciation entries means not only is profit increased on every job, but our additional team capacity can be directed to more valuable work. There is literally no risk in the investment of AssetAccountant fixed asset depreciation software.
Big Boy Jocks On....
Ever wanted the big company fixed asset system without all the clunkiness and overthinking on the part of the software developers (I'm looking at you Thomson Reuters...)? Well then you need AssetAccountant. It provides just the right mix of complex depreciation calculations and beautiful user interface. It's a system designed by accountants and executed perfectly by developers. The integration is seamless with Xero (you can sign into AA with Xero credentials which is awesome if you are already running Xero on your browser) and journaling synchs are very flexible between the two applications. Then there is the price. I challenge you to find a more robust fixed asset system at these price points. Well done AssetAccountant.
You get me.
I now have my big boy jocks back on for fixed asset management....and they fit!
Ever wanted the big company fixed asset system without all the clunkiness and overthinking on the part of the software developers (I'm looking at you Thomson Reuters...)? Well then you need AssetAccountant. It provides just the right mix of complex depreciation calculations and beautiful user interface. It's a system designed by accountants and executed perfectly by developers. The integration is seamless with Xero (you can sign into AA with Xero credentials which is awesome if you are already running Xero on your browser) and journaling synchs are very flexible between the two applications. Then there is the price. I challenge you to find a more robust fixed asset system at these price points. Well done AssetAccountant.
You get me.
I now have my big boy jocks back on for fixed asset management....and they fit!
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.
It’s amazing we calculated this year’s depreciation in just a matter of minutes!
Our organisation was looking for a standalone cloud-based fixed asset register that could calculate depreciation for multiple companies. AssetAccountant was a perfect solution that removed the need for tracking assets and calculating depreciation through spreadsheets.
The team at AssetAccountant were very responsive throughout the implementation process. The system is straightforward to use and has various options for both asset tracking and depreciation to make it suitable for most organisations.
Now that AssetAccountant is in our app store, our customers and sales team have a cloud option for fixed asset depreciation which has a strong integration with QuickBooks Online.
After years of “paying a premium” for our Asset Management, we decided to go in-house. More than impressed with the ease and capability of the software, and the staff were a pleasure to deal with from go to whoa. Fabulous to have monthly reporting, as opposed to annual as well.
I have seen a lot of niche products come and go but the one constant has been the lack of a decent fixed asset register. I was recently invited to see the latest incarnation and it did not disappoint. I am confident that both accounting firms and corporate clients will be lining up to use it – I have already been extolling the solutions’ virtues.
We initially came across AssetAccountant when researching potential replacements for the Xero asset register. AssetAccountant sparked our interest due to its ability to easily and transparently forecast depreciation, transfer assets between sites, revalue assets and asset part disposals. The AA team have been extremely helpful which has provided us with confidence in the product, we look forward to exploring additional features to find more efficiencies in our processes.
We highly recommend the use of AssetAccountant. Our clients benefit immensely from accurate asset register records, making spreadsheet accounting (and typical errors) a thing of the past. We can easily maintain tax and accounting registers providing our clients with accurate and meaningful information. AssetAccountant is a breeze to use, and we love that it integrates with QBO and Xero.
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When is it appropriate to consider a third party depreciation management system?
If your fixed asset depreciation calculations are relatively straightforward, the use of your native accounting software module is almost certainly appropriate. It will (or should) work well as part of the suite offered by that provider and it makes sense that there is a general preference to minimise the number of systems that you might use.
However, for many businesses, their accounting system will not handle all their requirements meaning that the reasons that they look to a third party system to manage depreciation include:
- A requirement for multiple sets of books for accounts and tax
- Large volumes of data to manage meaning that functionality such as the following saves a vast amount of time:
- Unlimited classifications such as cost centres, locations etc
- Custom fields per asset
- Audit trail reports
- Efficient performance at scale
- Some specific treatments that occur frequently:
- Different cost bases and acquisition dates by book
- Components
- Partial disposals
- Bulk actions (disposals, revaluations, etc)
- Work in progress / Assets under construction
- Forecasting
- Management of complex accounting matters such as:
- Reassessments
- Revaluations and impairments
- Enablement of full tax calculations:
- Pools such as the Low Value Pool, Small Business Pool or Software Pool
- Second element of cost
- Private/taxable use
- Tax rulings maintained and updated by AssetAccountant™ including the real-time ATO effective life lookup tool, backing business investment & luxury vehicle cap limits
- Leases and hire purchase calculations are also required
