Leading Accounting Software for Small Businesses

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 IRD tax rulings and accounting standards like 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:

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What are fixed assets in business?

Fixed assets in businesses, also referred to as tangible assets, are the enduring physical assets possessed by a company that are not meant to be sold as part of regular business activities. These assets are vital for the smooth functioning of the company and are not anticipated to be converted into cash within a year. Fixed assets in small businesses play a crucial role in generating income, sustaining daily operations, and fostering expansion. Some typical instances of fixed assets encompass buildings, land, machinery, vehicles, and equipment.

So what are fixed assets in business? Fixed assets serve several key purposes within a business context:

Production and Operations:

Fixed assets play a crucial role in the production process and are essential for delivering goods and services. Examples of such fixed assets in small businesses include manufacturing equipment within a factory, vehicles used for transportation, and specialised machinery utilised in construction.

Long-Term Investment:

Acquiring fixed assets usually requires a substantial investment of capital. Nevertheless, these assets are anticipated to deliver long-term value, thereby enhancing the company’s profitability and competitive edge.

Asset Value Preservation:

Fixed assets are initially recorded on the balance sheet at their original cost, after deducting the accumulated depreciation. Although these assets decrease in value over time, they play a crucial role in safeguarding the company’s financial well-being by facilitating revenue generation and operational efficiency.

Collateral for Financing:

Utilising fixed assets as collateral can enhance the chances of securing financing from lenders, as their physical presence offers a sense of security to creditors. This, in turn, can lead to more favorable loan or credit terms.

Strategic Decision Making:

Accurate knowledge of the structure, worth, and state of fixed assets is imperative for making strategic choices. The management depends on precise asset information to evaluate performance, strategise for enhancements or substitutions, allocate resources efficiently, and make well-informed investment choices.

Compliance and Reporting:

Businesses must ensure accurate accounting of fixed assets in their financial statements in order to comply with accounting standards and regulatory obligations. This entails reporting depreciation expenses and maintaining comprehensive documentation for audits and tax purposes.

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Flexible, user-friendly presentation of complex functionality:

AssetAccountant – saving you from spreadsheets since 2019

Let’s kick some assets

How are fixed assets treated in accounting terms for business?

Fixed assets in accounting are considered as long-term assets that hold substantial value and usefulness for a business. Fixed assets in small businesses are subject to specific principles and standards that aim to accurately depict their worth, utilisation, and influence on financial statements. Let’s delve into the accounting treatment of fixed assets:

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Recognition and Initial Measurement: 

Upon acquiring a fixed asset, the business records it on the balance sheet at its historical cost. This cost encompasses all expenses directly related to preparing the asset for its intended use and location. Such costs usually consist of the purchase price, shipping and handling fees, installation charges, and any other essential expenditures.

Depreciation:

Fixed assets undergo depreciation as their value decreases gradually over time due to factors like wear and tear, obsolescence, or other reasons. Depreciation costs are recorded on the income statement to distribute the asset’s cost evenly over its expected useful life. Different techniques, such as straight-line depreciation, declining balance method, or units of production method, can be employed to determine depreciation.

Subsequent Measurement:

Fixed assets are usually recorded on the balance sheet at their initial cost minus the accumulated depreciation. Nevertheless, if the fair value of the asset drops considerably below its carrying amount, impairment losses are acknowledged to decrease the value of the asset.

Disposal:

Upon disposal or sale of a fixed asset, the remaining book value (original cost minus accumulated depreciation) is eliminated from the balance sheet, while any gain or loss from the transaction is reflected in the income statement.

Disclosure:

Businesses must provide detailed information regarding their fixed assets in their financial statements. This includes disclosing the type and value of the assets, the depreciation methods employed, the estimated useful lives of the assets, and any notable impairments or disposals that occurred during the reporting period.

Priced to meet the market:

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The importance of using the right fixed asset software for energy industry

Separate from your broad-use accounting for small businesses general ledger software (e.g. QuickBooks Online, Xero, or an ERP your organisation utilises), specialist and best-of-breed fixed asset accounting software is crucial to efficiently and accurately managing the often complex process of fixed asset accounting.

The significance of utilising specialist accounting software for businesses for fixed asset management cannot be emphasised enough. If not properly managed, fixed assets can become a burden rather than an advantage.

AssetAccountant for USA business equips businesses of all sizes with the necessary tools to monitor, maintain, and dispose of their fixed assets. This encompasses tracking the acquisition and disposal of assets, as well as maintaining accurate records of their location, condition, and value. By utilising our software, businesses can guarantee that their fixed asset depreciation and lease accounting is is effective, accurate and efficient.

Relying on spreadsheets or other manual processes to manage fixed assets can be both risky and inefficient. Spreadsheets are prone to errors, and it can be challenging to keep them updated. Manual processes are also time-consuming, and it can be difficult to ensure that all the required information is included.

With AssetAccountant businesses can automate many of the tasks associated with fixed asset management, saving significant time and minimising the risk of errors.

AssetAccountant is certified to the stringent and internationally recognised ISO27001 data security standard.

There are numerous benefits to using cloud-based software for accounting for small business instead of incumbent (and surprisingly still quite common) use of antiquated desktop-based solutions.

One major advantage is the accessibility of cloud-based software. It can be accessed from any device with an internet connection, allowing employees to easily access and update information from anywhere they are located.

It is especially advantageous to have accounting software for multiple businesses with multiple locations or employees who work remotely. It eliminates the need for employees to be physically present in the office to access and update asset information.

Another advantage of cloud-based accounting software in small businesses is the lower upfront costs. Unlike desktop-based software, there is no need to purchase and install software on individual computers. This not only saves money but also reduces the time and effort required for installation and maintenance.

Furthermore, cloud-based software offers automatic updates and backups. This ensures that businesses always have the latest version of the software without the need for manual updates. It also provides peace of mind knowing that data is regularly backed up and secure.

Why our clients love Asset Accountant

Greg Singh Group Tax Manager, Whitehaven Coal Limited
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Greg Singh image

“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.”

Sharon Hughes CFO, Buildsafe
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Sharon Hughes image

"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."

John Smith CFO & Company Secretary, Dateline Resources Ltd
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John Smith image

"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."

Suzanne Walker Director, Clear Path Accounting
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Suzanne Walker image

"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."

Chris J Emerson CPA Emerson Consulting Services LLC
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Chris J Emerson CPA image

"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!"

Marco Abril Financial Controller, TPM Builders
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Marco Abril image

"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."

Veenith Singh Group Finance Operations Manager, Beca Group
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Veenith Singh image

"It’s amazing we calculated this year’s depreciation in just a matter of minutes!"

Con Kirgianis Finance Manager, KWP!
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Con Kirgianis image

"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."

Matt Pisarski Global Business Development, Intuit QuickBooks
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Matt Pisarski image

"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."

Kim Stanton Chief Financial Officer, Hardy Aviation
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Kim Stanton image

"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."

Alan FitzGerald Founder, Practice Connections
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Alan FitzGerald image

"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."

Elspeth Mildren Accountant, Lawson Grains
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Elspeth Mildren image

"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."

Leanne Spiteri Founder, Virtue Private Advisory
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Leanne Spiteri image

"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."

FAQs

What is fixed asset depreciation for small businesses in NZ?
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Fixed asset depreciation for small businesses in New Zealand is the process of accounting for the reduction in value of business assets over time. These assets include equipment, machinery, and office property. Depreciation is recorded in financial statements in accordance with local accounting standards to reflect the current value of the assets.

How do lease calculation rules apply to small businesses in New Zealand?
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For small businesses in New Zealand, lease calculation rules, particularly under IFRS 16, require that leased assets be recognized on the balance sheet and depreciated over the lease term. This impacts how small businesses account for leased equipment or property, ensuring accurate financial reporting.

What are the relevant accounting standards for fixed asset depreciation in small businesses?
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Small businesses in New Zealand must adhere to International Financial Reporting Standards (IFRS), specifically IAS 16 for tangible fixed assets and IFRS 16 for leased assets. These standards provide a framework for correctly calculating and reporting asset depreciation.

How does fixed asset depreciation software benefit small businesses?
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Fixed asset depreciation software automates the process of tracking and calculating depreciation for small businesses. It ensures compliance with NZ accounting standards, simplifies tax reporting, and provides accurate financial data on the depreciation of assets, saving time and reducing the risk of errors.

How do you determine the depreciation rate for small business assets?
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The depreciation rate for small business assets in New Zealand is determined by the expected useful life of the asset, the asset's initial value, and the depreciation method applied (e.g., straight-line or diminishing value). These calculations must comply with New Zealand's accounting standards.

Should small businesses revalue their assets for depreciation purposes?
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Yes, small businesses in New Zealand should periodically revalue their assets to ensure the depreciation accurately reflects the asset's current market value. This is particularly important for maintaining compliance with local accounting regulations and producing accurate financial reports.