Definition of fixed assets
Fixed assets are defined as long terms assets that are usually used and not sold within a year and used by a company for the purpose of generating income. Some examples of fixed assets include motor vehicles, office equipment such as photocopy machines and furniture and fittings such as office furniture.
Ability to produce useful fixed asset reports for management
Xero fixed asset register is a report which lists all the categories of fixed assets owned by your company and the total amounts of each category of fixed assets. Each category of fixed asset for example motor vehicle is made up of many individual motor vehicles within that category, the same goes for other categories of fixed assets. It also lists the total purchases of each category of fixed asset during the year and the total depreciation charge for the year for each individual asset and each category of fixed assets. If assets are sold during the year, the report will also reflect this deduction.
Xero fixed asset reconciliation report is a report which compares the fixed asset dollar value as per financial statements for example the balance sheet versus the fixed asset value in the fixed asset register. There are instances when the dollar value of the balance sheet and the fixed asset register reflects differences and this reconciliation reports will pick out the differences for analysis.
Automatic calculation of depreciation
Xero allows the user to allocate a depreciation policy to the individual asset, for example straight line depreciation method or reducing balance depreciation method. The user will be able to select the depreciation period for the assets and run the depreciation. If an error is made in the depreciation period, the user can rollback the depreciation and run it the second time.
Integration of fixed asset module in to full set of accounts
Xero fixed asset module is fully integrated to the full set of accounts in the software. This allows users to add in the fixed assets opening balance details, purchases and disposals of fixed assets and depreciation processing. The fixed asset transactions managed through the fixed assets modules will be recorded to the Xero accounting software and appear in the balance sheet and general ledger reports.
In conclusion, managing fixed assets in Xero is a breeze with their fixed asset module. In comparison, ABSS accounting software manages fixed assets through the purchases module and the record journal entry modules.
