Fixed assets management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. Organizations face a significant challenge to track the location, quantity, condition, and maintenance and depreciation status of their fixed assets.
Maintenance of fixed asset register is key tool of fixed assets management, fixed asset register is maintained for financial reporting and filing of tax returns. If a business holds numerous assets, it require proper updating of fixed asset register to keep better control over asset, avoidance of misuse, pilferage, damage and reporting of value of assets in financial statements at accurate cost
If a business use different tax rate, other than the rates, provided in the Income Tax Ordinance, 2001 then it is necessary to use two register of fixed assets one for financial reporting and the other for calculation of deferred tax (tax purpose). Hence separate fixed asset registers for accounting and tax purposes along with depreciation and amortization schedules are prepared.
Fixed Asset Tracking Software
We also implement fixed asset tracking software to manage assets with better accuracy and in more formal way. This solution is suitable for companies which have number of branches across the country.
