Enterprise depreciation and lease accounting software for manufacturing companies in Australia – and the world
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.
It is important to maintain accurate records of fixed assets, especially when it comes to manufacturing asset depreciation and lease accounting. Machinery, buildings, vehicles, furniture, and IT equipment all demand careful scrutiny to ensure precise financial reporting and adherence to accounting regulations. By implementing proper depreciation and lease accounting methods, manufacturing companies can produce transparent and dependable financial statements. These statements play a vital role in decision-making, regulatory compliance, and maintaining a solid financial position.
Manufacturing plants, warehouses, and other facilities are substantial investments. Depreciation of these structures must be calculated accurately to account for their useful life, which can vary depending on factors such as construction quality, usage intensity, and maintenance practices. Additionally, any leased facilities should be accounted for under lease accounting standards, particularly with the adoption of IFRS 16 or ASC 842, which require most leases to be recognised on the balance sheet.
Machinery and equipment are the backbone of manufacturing operations. These fixed asset in manufacturing often represent a significant portion of the capital investment and are integral to production processes. Proper manufacturing asset depreciation accounting is critical to reflect the wear and tear over time, ensuring the financial statements provide a true and fair view of the asset’s value.
Manufacturing companies often rely on a fleet of vehicles for the transportation of raw materials and finished goods. These assets must be depreciated appropriately, considering factors like mileage, usage conditions, and maintenance. Lease accounting is also pertinent for leased vehicles, ensuring compliance with new lease accounting standards.
Though not as significant in value as machinery or buildings, furniture and fixtures within manufacturing facilities contribute to the overall operational environment. Depreciating these fixed assets in manufacturing accurately ensures that their cost is matched with the periods benefiting from their use, maintaining the integrity of financial reports.
The increasing reliance on technology in manufacturing necessitates the careful accounting of computers and IT equipment. These assets typically have shorter useful lives and require accelerated depreciation methods. Additionally, with the prevalence of leasing IT equipment, lease accounting standards need to be meticulously applied to ensure accurate financial reporting.
Fixed asset accounting is a cornerstone of financial management in the manufacturing sector, encompassing key concepts such as depreciation, lease accounting, and balance sheet preservation. This process is essential for accurate financial reporting, regulatory compliance, and sustaining operational efficiency. Depreciation refers to the systematic allocation of the cost of a tangible fixed asset over its useful life. Lease accounting has evolved significantly with standards like IFRS 16 and ASC 842, which require most leases to be recognised on the balance sheet. Preserving the integrity of the balance sheet is essential for manufacturing companies to maintain financial stability and attract investment.
Depreciation ensures that the expense of an asset is matched with the revenue it generates over time. In the manufacturing sector, where assets like machinery and equipment are heavily utilised, this alignment is critical for presenting a true picture of profitability. It prevents the overstatement of earnings by spreading the cost of a fixed asset in manufacturing over its productive years.
Depreciation directly affects taxable income. Manufacturing companies benefit from understanding and applying appropriate depreciation methods, such as straight-line or declining balance, to optimise tax obligations. AssetAccountant’s fixed asset depreciation software for Australia provides accurate depreciation calculations to help compliance with ATO tax law and avoiding penalties.
Depreciation schedules inform investment decisions by indicating when assets are nearing the end of their useful lives. This foresight allows companies to plan for replacements or upgrades, ensuring that production is not interrupted by unexpected equipment failures.
By recognising lease liabilities and corresponding right-of-use assets on the balance sheet, companies provide a clearer picture of their financial obligations. This transparency helps investors and stakeholders better understand the company’s financial health and future commitments.
Lease accounting influences decisions about whether to lease or purchase assets. With leases now prominently displayed on balance sheets, companies may reconsider their strategies to optimise financial performance and asset utilisation.
Depreciation and impairment testing ensure that the value of fixed assets is accurately reflected. This accuracy prevents overstatement or understatement of asset values, providing a reliable basis for financial analysis and decision-making.
AssetAccountant’s depreciation and lease accounting software plays an important part in a manufacturing company’s software stack by boosting precision, guaranteeing adherence to regulations, enhancing financial reporting, and aiding in strategic asset management. Through the utilisation of this software, manufacturing companies can optimise their accounting procedures, cut down on expenses, and maintain a strong and accurate balance sheet.
Manufacturing companies rely heavily on various fixed assets, including machinery, equipment, buildings, and vehicles. Manually calculating depreciation and managing lease accounting with spreadsheets or antiquated desktop software for such a diverse and extensive asset base can be error-prone and time-consuming. AssetAccountant’s manufacturing accounting software automates these processes, ensuring precise calculations based on appropriate depreciation methods and schedules. This automation reduces the risk of human error and significantly improves efficiency, freeing up valuable time for finance and accounting professionals to focus on more strategic tasks.
Compliance with accounting standards such as US GAAP, IFRS, ASC 842, and IFRS 16 is vital for manufacturing companies. These standards have stringent requirements for recognising and reporting depreciation and leases on financial statements. AssetAccountant is designed to adhere to these regulatory frameworks, providing built-in compliance features that ensure all transactions are recorded accurately and in line with the latest standards. This is important for avoiding legal penalties, maintaining investor confidence, and ensuring the integrity of the balance sheet and related financial reporting.
AssetAccountant enhances the quality of financial reports by providing real-time insights into the value and status of fixed assets and lease liabilities. This capability allows for more accurate accounting for manufacturing including balance sheets, income statements, and cash flow statements. The software’s ability to generate detailed reports and analytics also supports better forecasting and budgeting, aiding in strategic planning and financial management.
AssetAccountant decided very early on that client data security was vitally important for us as a business and for our worldwide subscriber base. As a result, encryption, regular backups, and fully audited compliance with the ISO27001 international data security standard happens every year. In contrast, spreadsheets and desktop software often suffer inaccuracy and very little data security protection measures.
While there is an annual subscription for AssetAccountant, the cost savings are substantial. Automation reduces the need for extensive manual data entry from spreadsheets and lowers the risk of costly errors. Improved compliance and accurate reporting help avoid regulatory fines and audit adjustments. Moreover, optimised asset management and strategic decision-making contribute to overall financial efficiency, reducing unnecessary expenditures and improving return on investment.
With an AssetAccountant subscription, this accounting software for manufacturing is automatically updated and maintained which is a situation far superior to spreadsheets because it ensures compliance with the latest accounting standards and regulations, reduces the risk of human error, and enhances data accuracy. Automated software like this provides real-time insights and comprehensive fixed asset management, streamlining processes and improving efficiency. In contrast, spreadsheets require manual updates, are prone to errors, and lack the advanced features necessary for handling complex depreciation and lease accounting. This shift to automated software ultimately supports better decision-making and operational excellence.
“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."
"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!"
"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."
Fixed asset depreciation for the manufacturing industry involves allocating the cost of long-term assets, such as machinery, production equipment, and facilities, over their useful life. Depreciation is crucial for complying with Australian accounting standards and for accurately reporting the value of assets, which can help manufacturers reduce taxable income.
Manufacturing companies in Australia can use the straight-line depreciation method, which provides a consistent depreciation expense over an asset’s useful life, or the diminishing value method, which accelerates depreciation for higher-use assets. Both methods must comply with Australian accounting standards and can be managed through manufacturing accounting software.
Under lease calculation rules for the manufacturing industry, leased assets, such as factory buildings or equipment, must be recognized on the balance sheet following AASB 16 Leases. The depreciation is calculated based on the asset’s useful life or the lease term, ensuring compliance with accounting standards in financial reporting.
Fixed asset depreciation in the manufacturing industry is governed by AASB 116 Property, Plant and Equipment, which outlines how manufacturers should handle the recognition, depreciation, and impairment of physical assets. Adhering to these accounting standards ensures accurate financial reporting and regulatory compliance.
The introduction of AASB 16 Leases has changed how manufacturing companies account for leases, requiring most leases to be recorded on the balance sheet. The new lease calculation rules for the manufacturing industry affect the depreciation of leased assets and the calculation of liabilities, making compliance with accounting standards essential.
Manufacturing companies in Australia can depreciate assets such as machinery, production equipment, vehicles, and factory buildings. Depreciation must be calculated according to guidelines set by the Australian Taxation Office (ATO) and managed using manufacturing accounting software.
Fixed asset depreciation for manufacturing businesses is vital as it impacts the profit and loss statement by reducing taxable income, and the balance sheet by reflecting the declining value of assets. Proper depreciation management ensures compliance with accounting standards and provides accurate financial insights, which can be efficiently handled with manufacturing accounting software.
