Fixed asset depreciation for transportation industry

Sophisticated depreciation and lease accounting software for logistics companies in Australia

We take depreciation and leasing seriously

We undertake detailed modelling of fixed asset depreciation and lease calculation rules for both accounting and tax.

We monitor changes to ATO tax rulings and accounting standards like IAS 16 and IFRS 16 so you don’t have to.

And, of course, we are ISO27001 certified.

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Deep coverage of depreciation and leasing concepts:

IFRS depreciation coverage:
  • Prime cost, diminishing value, units of use, immediate treatments
  • Revaluations and Impairments
  • Adjustments and Reassessments
  • Components and works in progress
  • Partial acquisitions and disposals
IFRS 16 leasing coverage:
  • Finance lease, operating lease and hire purchase agreements
  • Lease opening balances
  • Lease terminations
  • Lease refinancing and adjustments
  • Multiple assets per lease
Detailed ATO rules, including:
  • Low Value Pool
  • Small Business Pool
  • Software Pools
  • Division 43
  • Blackhole Expenditure
  • Luxury Vehicle Caps
  • Backing Business Investment
  • Automated ATO effective life lookups

Fixed assets for transportation and logistics companies

Fixed asset depreciation software and lease accounting management plays an important role in the transport and logistics industry because of the substantial capital invested in infrastructure and equipment typically used in most company’s daily operations. Proper handling of fixed assets guarantees precise financial statements, adherence to regulations, and informed strategic planning. Vehicles, warehouses, and specialised machinery are among the valuable assets that demand careful monitoring of depreciation, maintenance expenses, and utilisation.

Vehicles: Trucks are often the backbone of transport companies, these vehicles facilitate the movement of goods over land. Vans are also commonly used for local deliveries and smaller-scale logistics operations. In the warehouse and/or distribution centres, forklifts and other equipment handling machines are essential for material. For those larger more specialised air freight handling companies, aircraft represent a significant investment of fixed assets on the balance sheet.

Technology Infrastructure: IT Systems and software applications for fleet management, route optimisation, inventory tracking, and customer relationship management are commonplace. This will include communication systems and the infrastructure for facilitating communication between drivers, dispatchers, and other stakeholders. GPS and telematics technology is used for real-time tracking of vehicles and optimising route efficiency.

Warehouses and Distribution Centres: Physical facilities utilised for storing inventory, managing logistics, and facilitating the distribution process. Infrastructure within these facilities, such as shelving, racks, and storage systems, also constitute fixed assets.

Machinery and Equipment: Materials handling equipment may include include conveyor belts, pallet jacks, and cranes, essential for efficient material handling and logistics operations. Packaging machinery equipment may be installed for packaging goods before shipment. Sorting systems can be automated for categorising packages and cargo.

Containers and Pallets: Are vital for the transportation of goods via various modes such as sea, land, or air. Often these are hired, but also a component of may be company owned for stacking and organising goods during transportation and storage.

Real estate and land holdings: Land and Property may be owned or leased for constructing logistics facilities, warehouses, or administrative offices. Some larger transport and logistics companies hold such assets for rental income or future development.

Specialised equipment: Refrigeration capability is a large industry for  perishable goods under controlled temperature conditions. Tankers and specialised vehicles used for transporting liquids or gases, commonly seen in industries like chemical and petroleum. Also cranes may be necessary for loading and unloading heavy or oversised cargo, especially in industries like construction and manufacturing.

Office Equipment and Furniture: Computers, printers, desks, chairs, and other office furnishings essential for administrative functions within the company.

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Flexible, user-friendly presentation of complex functionality:

  • Accounting and tax calculations, side by side
  • Depreciation and leasing calculations, side by side
  • Depreciation and lease liability forecasting
  • ‘Dimensions’ support (eg Profit Centres, Locations, Departments – user defined)
  • Bulk operations (acquisitions, disposals, revaluations, reassessments and more)
  • Consolidated reporting
  • Granular journaling to facilitate bank reconciliations
  • Attachments and Custom Fields

AssetAccountant – saving you from spreadsheets since 2019

Fixed asset management for transport and logistics companies: Depreciation and lease accounting

Proper management of fixed asset accounting, such as depreciation and lease accounting, is crucial for companies operating in the transport and logistics sector. By maintaining precise financial records, adhering to accounting regulations, efficiently allocating resources, managing risks, strategically planning, and boosting investor trust, these accounting procedures play a vital role in enhancing the effectiveness, longevity, and competitiveness of transport and logistics firms within a constantly evolving and fiercely competitive market.

Accurate Financial Reporting: Fixed asset for transportation accounting is essential for maintaining an accurate representation of a company’s financial health on its balance sheet. By accurately valuing assets owned or under lease, stakeholders are provided with a transparent view of the organisation’s financial standing. Depreciation accounting plays a crucial role in this process by allocating the cost of assets over their useful life, reflecting their gradual consumption or obsolescence. This ensures that the company’s profitability and financial position are fairly and accurately presented.

Compliance with Accounting Standards: Adhering to accounting standards such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) is required for ensuring consistency, comparability, and transparency in financial fixed asset for transportation accounting practices. Lease accounting standards, such as ASC 842 (in the USA) or IFRS 16 (rest of world), mandate the recognition of lease assets and liabilities on the balance sheet, enhancing transparency and providing stakeholders with a comprehensive understanding of the company’s financial obligations related to leases.

Optimised Resource Allocation: Accurate depreciation accounting enables companies to assess the true cost of asset ownership over its useful life, aiding in informed decision-making regarding asset replacement, refurbishment, or disposal. Lease accounting facilitates better evaluation of lease versus buy decisions, enabling companies to choose the most cost-effective financing options for acquiring assets, thereby optimising capital allocation and enhancing financial efficiency.

Risk Management: Effective transportation fixed asset software in accounting helps mitigate risks associated with asset mismanagement, such as unauthorised use, loss, theft, or damage, by providing mechanisms for tracking asset location, condition, and usage. Lease accounting ensures proper recognition and disclosure of lease-related liabilities, reducing the risk of financial misstatements or non-compliance with regulatory requirements.

Strategic Planning and Decision-Making: Accurate and comprehensive fixed asset management for transportation enables management to develop long-term strategic plans, assess investment opportunities, and prioritise capital expenditures based on the anticipated returns and risk profiles of different projects. Lease accounting facilitates scenario analysis and sensitivity testing, allowing companies to evaluate the financial implications of various lease structures and terms on cash flow, profitability, and financial ratios.

Enhanced Investor Confidence: Transparent and reliable fixed asset for transportation and logistics company depreciation & lease accounting practices give confidence to investors, lenders, stakeholders or even potential buyers of a business by providing them with accurate and timely information to assess the company’s financial performance, solvency, and risk profile. Compliance with accounting standards and regulatory requirements demonstrates the company’s commitment to governance, integrity, and accountability, enhancing its reputation and attractiveness to investors.

Priced to meet the market:

  • Free to use for up to 10 assets
  • Unlimited users / seats
  • Low, monthly subscriptions for businesses with small asset numbers and/or limited feature requirements
  • Volume-based annual pricing (POA) for corporates with large numbers of assets and entities
Fixed assets and leases for small business

Transportation accounting software

AssetAccountant for corporations cloud-based fixed asset transportation accounting software offers logistics companies enhanced accessibility, collaboration, security, scalability, integration capabilities, and cost-efficiency compared to traditional spreadsheet-based or clunky, outdated Microsoft Windows software, making it a prudent investment for optimising financial management and operational performance in today’s digital era.

Accessibility and Flexibility: Cloud-based transportation fixed asset software allows for anytime, anywhere access to financial data, enabling employees to work remotely or access information while on the go, which is particularly valuable in the dynamic and mobile nature of the transportation industry.

Data Security and Compliance: Cloud-based solutions like AssetAccountant for depreciation and lease transportation fixed asset software provides strong security measures and data encryption, guaranteeing the protection of sensitive financial information against unauthorised access and cyber threats. Moreover, these platforms frequently comply with industry-specific standards, like PCI DSS for payment processing in logistics, to ensure that all regulatory requirements are met. AssetAccountant is ISO27001 certified to the highest data security Standard in the world.

Scalability and Integration: Cloud-based accounting software is scalable, capable of accommodating the evolving needs of transportation companies as they grow and expand their operations. Furthermore, subscription platforms like AssetAccountant often integrate seamlessly with other business systems (e.g. General Ledger and/or ERPs), such as inventory management or fleet tracking software, streamlining processes and improving overall operational efficiency.

Cost-Efficiency:  Eliminate the need for costly hardware investments and maintenance associated with on-premises software, offering a cost-effective and predictable pricing model based on subscription fees. Additionally, updates and maintenance made to AssetAccountant regularly rolls out software upgrades, improvements and functionality additions at no additional cost, reducing overall IT overheads for transport and logistics companies.

Why our clients love AssetAccountant