If the register and the ledger disagree, at least one of them is wrong, and nobody knows which.
A fixed asset register should hold, for every asset, a unique ID, description, location, owner, acquisition date, cost, useful life, residual value, depreciation method, accumulated depreciation and net book value, plus disposal details when it goes. Reconcile register totals to the general ledger every period, and physically verify assets at least once a year.
| Field | Why it matters |
|---|---|
| Asset ID (and tag number) | Links the register to the physical item |
| Description and category | Drives the depreciation policy and reporting |
| Location and responsible person | Makes physical verification possible |
| Supplier and invoice reference | Evidence of cost |
| Acquisition or in-use date | When depreciation starts |
| Cost | The amount capitalised |
| Useful life and residual value | Inputs to the depreciation charge |
| Depreciation method | Straight-line or reducing balance |
| Accumulated depreciation and net book value | What the ledger should show |
| Disposal date, proceeds and gain or loss | Removes the asset correctly |
Decide the minimum cost for an item to be capitalised rather than expensed, write it into your policy, and apply it consistently. Without one, registers fill with low-value items nobody can find.
Run this roll-forward for each asset category:
Each closing figure should agree to the general ledger account for that category. A difference usually means an addition posted to the ledger but not the register, a disposal recorded in one and not the other, or a manual journal to the depreciation account.
At least once a year, check a sample of register entries against the physical asset, and a sample of physical assets back to the register. The first test finds ghost assets, still on the books but no longer there. The second finds assets in use that were never recorded.
When an asset is sold, scrapped or lost, remove both its cost and its accumulated depreciation, and record any proceeds. The gain or loss is proceeds minus net book value at disposal. Disposals that are never recorded are the main cause of ghost assets.
If an asset is damaged, idle or worth much less than its book value, it may need writing down. Flag these during physical verification.
For how the depreciation figures are calculated, see straight-line vs reducing balance depreciation.
Book depreciation in the register is separate from tax. UK businesses claim capital allowances instead of deducting depreciation for tax; US businesses generally use MACRS for tax depreciation. Keep the register on your accounting policy and hold tax calculations in a separate schedule.
12 questions on how strong your close controls are. Free to use online.
The Fixed Assets & Depreciation System calculates straight-line and reducing-balance depreciation, stops depreciation at the disposal date with the profit or loss calculated, and ties a full movement schedule back to the register. Excel, no macros, one-time price.
Every month or quarter, at the same frequency you report. Leaving it to year end lets differences pile up.
An asset still recorded in the register that no longer exists or can't be found, usually because a disposal was never recorded.
Yes, for small and mid-sized registers, provided the depreciation is formula-driven and the register is reconciled to the ledger every period.
Finance usually maintains it, but each asset should have a named owner in the business who confirms during physical verification that it still exists and is in use.
Last updated 18 October 2026. General guidance for finance teams; check it against your own policies, systems and local rules.