Fixed Asset accounting

Understanding fixed asset accounting

Fixed asset accounting is the precise recordkeeping of your business’s financial records about your capital assets. This details the lifecycle of an asset within five different stages. After your initial purchase, each fixed asset’s lifecycle includes at least three of the five stages below:

1. Acquisition:?A new fixed asset is entered into the books.
2. Depreciation:?Your asset periodically declines in value, calculated within a particular method.
3. Revaluation:?An assessment to record its current fair market value.
4. Impairment:?Also known as writing down, this serves as the recorded reduction in value due to events or circumstances.
5. Disposal:?Selling, scrapping, or another form of disposing an asset at the end of its service life.

Audits are also included in the detailed checks of your company’s accounting records after closing the books for the fiscal year. Whether internal or external, this is where you may notice inconsistencies or differences between your notes and the actual state of your assets. This also promotes transparency to your assets and accounting books if you’re losing more money than anticipated.

Adding fixed asset accounting software to your business

As your business continues its growth, implementing intuitive software to add transparency to your accounting process is an important part of your future strategies. An all-in-one, cloud solution serves as a turning point in your business’s success.

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We at KRGM AccTech Services provide all-in-one cloud-based software for FA Accounting and Fixed Assets Tracking. We also provide services relating to FA Bar Coding.

For any enquiry, please call at #9910089724 or E-mail @ [email protected] / [email protected].