The fixed asset register: what it is and why you need one

What the register records

A fixed asset register lists each significant asset — machinery, vehicles, computers, fit-out — with its cost, purchase date, expected life, depreciation method and current book value. It is the detailed ledger behind the single "fixed assets" line on your balance sheet.

Why it drives depreciation

Depreciation spreads each asset's cost over its useful life, and the register is where that calculation lives asset by asset. Without it, depreciation becomes guesswork and your balance sheet drifts from reality. A clean register keeps net book values accurate year on year.

The tax link

The register also underpins capital allowances — you need to know exactly what you bought and when to claim correctly. When you sell or scrap an asset, the register lets you calculate the profit or loss and any balancing allowance or charge.

What auditors and lenders want

Auditors reconcile the register to the accounts and, where relevant, to the physical assets. Lenders considering asset-backed finance want to see what the company owns and its value. A maintained register signals financial control; a missing one signals sloppiness.

Financing the assets

Asset finance lets you acquire equipment and spread the cost while the asset earns its keep.

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

See asset-based lending.