Quick answer
Fixed asset management software keeps a register of every asset an organisation owns, with cost, location, custodian, and tag number; calculates depreciation under accounting standards such as IAS 16; records transfers, revaluations, and disposals; supports physical verification with barcode or RFID tags; links to maintenance; and posts entries to the general ledger for accurate financial statements and audits.
- One register for all assets with tags and locations.
- Automated depreciation by asset class and method.
- Regular physical verification against the register.
- Clean data for audits and tax.
What does a fixed asset register record?
| Field | Example |
|---|---|
| Asset ID and tag | FA-00231, barcode label |
| Description and class | Delivery van, vehicles |
| Acquisition date and cost | Purchase date and capitalised cost |
| Location and custodian | Warehouse 2, logistics manager |
| Depreciation method and life | Straight-line, 5 years |
| Accumulated depreciation and book value | Updated each period |
| Status | In use, under repair, disposed |
How is depreciation calculated?
- Straight-line: equal charge each year over the useful life.
- Reducing balance: a fixed percentage of book value each year.
- Units of production: based on usage, such as hours or kilometres.
Under IFRS (IAS 16), companies choose a method that reflects how the asset’s benefits are used and review useful lives and residual values regularly.
What is the fixed asset lifecycle?
- Acquire. Purchase and capitalise the asset, including installation costs.
- Tag. Label it and record its location and custodian.
- Depreciate. Run depreciation each period.
- Maintain. Track maintenance and repairs.
- Transfer. Record moves between locations or departments.
- Verify. Physically check assets against the register.
- Dispose. Record sale, scrapping, or write-off with gain or loss.
How should physical verification work?
- Scan tags with a mobile app by location.
- List missing, extra, and mislocated assets.
- Investigate and correct the register.
- Repeat at least once a year, more often for high-value items.
Which organisations need it most?
- Schools and universities with labs, IT, furniture, and buses.
- Manufacturers with machines and tools.
- Facility managers and property companies.
- Companies with large IT estates.
Schools can see school inventory management software for consumables and smaller items.
How does Hudace manage fixed assets?
Hudace asset management provides the asset register and hierarchy, preventive and predictive maintenance, work orders, inspections, and mobile maintenance, connected to finance for depreciation and postings.
Frequently asked questions
What is fixed asset management software?
Software that keeps the asset register, calculates depreciation, and tracks asset location and status.
What is a fixed asset register?
A list of all fixed assets with cost, location, depreciation, and book value.
Which depreciation method is best?
The one that reflects how the asset is used; straight-line is most common.
How often should assets be verified?
At least annually, more often for valuable or mobile assets.
What is asset tagging?
Labelling assets with barcodes, QR codes, or RFID tags for tracking.
What standard covers fixed assets?
IAS 16 Property, Plant and Equipment under IFRS.
Does asset software link to maintenance?
Good systems link the register to maintenance schedules and work orders.