· Reviewed by Nimra Khalid
What is fixed asset accounting?
Fixed asset accounting records long-lived items a business buys to use rather than sell, such as vehicles, machinery, computers, furniture and leasehold improvements. Each is capitalized at cost, depreciated over its useful life and removed when sold or scrapped. A fixed asset register lists every item, and the ledger balances for cost and accumulated depreciation must agree with it.
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Fixed asset accounting: what we do and how it runs
Fixed asset accounting records long-lived items a business buys to use rather than sell, such as vehicles, machinery, computers, furniture and leasehold improvements. Each is capitalized at cost, depreciated over its useful life and removed when sold or scrapped. A fixed asset register lists every item, and the ledger balances for cost and accumulated depreciation must agree with it.
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What it is
Fixed asset accounting records long-lived items a business buys to use rather than sell, such as vehicles, machinery, computers, furniture and leasehold improvements. Each is capitalized at cost, depreciated over its useful life and removed when sold or scrapped. A fixed asset register lists every item, and the ledger balances for cost and accumulated depreciation must agree with it.
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What you get
Every asset registered with cost, date, life, method and location
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How it runs
Depreciation posted monthly, not estimated once a year
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Discovery call
A 20-minute call about what you own, how it was financed, what the ledger shows today and what your lender and CPA expect. We ask for the last tax depreciation schedule and any loan agreements.
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Equipment-heavy operators
Construction, trucking, transport, manufacturing and fitness businesses own vehicles and machines worth more than a year's profit. Depreciation is a large expense and it is usually wrong or missing until tax time.
Businesses with a lender
Your loan covenant or borrowing base uses net fixed assets. The lender expects a register and monthly depreciation, not a year-end plug from the CPA.
Owners opening new locations
Fit-outs, signage, kitchen equipment and IT for each new site need to be capitalized correctly and depreciated from the date they go into service.
What's included
- Capitalization policy documented: threshold, categories, useful lives, methods
- Fixed asset register built from invoices, loan documents and the existing ledger
- Additions recorded at full cost including freight, installation and setup
- Assets under construction and deposits tracked until placed in service
- Monthly depreciation calculated and posted by asset category
- Financed assets tied to loan and lease schedules for the same item
- Disposals, trade-ins and write-offs recorded with gain or loss computed
- Register reconciled to ledger cost and accumulated depreciation accounts monthly
- Repairs and maintenance separated from capital improvements
- Leasehold improvements and intangible assets amortized over the right term
- Book depreciation kept separate from tax depreciation your CPA computes
- Year-end fixed asset schedule and roll-forward for your preparer
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Fixed asset register | Every asset listed with cost, in-service date, life, method and location | Monthly |
| Depreciation entries | Posted for every category before the month-end close | Monthly |
| Register-to-ledger reconciliation | Cost and accumulated depreciation agree to the ledger with no differences | Monthly |
| Additions and disposals log | Every purchase, sale and write-off recorded within the month it happened | Monthly |
| Asset roll-forward | Opening, additions, disposals, depreciation and closing balances tied | Annually |
| Year-end schedule for tax | Book schedule handed to your CPA for tax depreciation | Annually |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
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Discovery call
A 20-minute call about what you own, how it was financed, what the ledger shows today and what your lender and CPA expect. We ask for the last tax depreciation schedule and any loan agreements.
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Register build
A named accountant rebuilds the register from invoices, loan documents, the prior schedule and the ledger. Missing items, expensed capital purchases and disposed assets still on the books are listed for your confirmation.
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Policy and catch-up entries
We agree the capitalization threshold, categories, lives and methods with you and your CPA, then post the entries that bring cost and accumulated depreciation into line with the register.
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Monthly maintenance
Each month, additions and disposals are recorded, depreciation is posted, the register is reconciled to the ledger, and the team lead signs the step off under Two-Tier Review.
Software we work in
How much does fixed asset accounting cost?
Fixed asset accounting is a monthly add-on to bookkeeping, or a standalone fee if you keep the rest of the books in-house, plus a one-time register build where none exists. The fee reflects the number of assets, additions per month and how many loans and leases must be tied. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Number of assets on the register and how many are financed
- Additions and disposals per month
- Whether a register exists or must be rebuilt from invoices and schedules
- Number of entities and locations the assets sit in
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| US | $150 to $1,600 per month for outsourced bookkeeping including add-on schedules | indinero, RadCity, NerdWallet (2026) |
| UK | £100 to £1,500 per month fixed fee; £20 to £55 per hour for project work | UK provider pricing surveys (2026) |
| Canada | C$300 to C$2,000 per month | Canadian bookkeeping fee surveys (2026) |
| Australia | A$300 to A$1,500 per month fixed; A$40 to A$100 per hour | Australian bookkeeping fee surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
Fixed asset accounting for your industry
Security and compliance
- Invoices and loan documents shared through an encrypted portal, not email attachments
- Accountant-role access and read-only bank feeds; we never move money
- MFA on every login, access logged per client, NDA per engagement
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do fixed asset accounting services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. A register of thirty assets with a few additions a year is a small monthly add-on; a fleet with financed vehicles added and traded monthly is more. As a market reference, US outsourced bookkeeping including schedules runs $150 to $1,600 per month (indinero, 2026).
What counts as a fixed asset?
An item you buy to use in the business for more than a year, above a threshold you set in your capitalization policy. Common thresholds for small businesses are $1,000 to $5,000 per item; smaller purchases are expensed. We document the threshold with you and your CPA so it is applied the same way every time.
Is book depreciation the same as tax depreciation?
No. Book depreciation spreads cost over the asset's useful life to show a fair monthly expense. Tax depreciation follows tax rules, such as US bonus depreciation and Section 179, UK capital allowances or Australian instant asset write-off, which your CPA or accountant applies. We keep the book schedule and hand it to your preparer; we do not give tax advice.
Can you build a register if I have never had one?
Yes. We rebuild it from purchase invoices, loan and lease documents, the prior tax depreciation schedule and the ledger. Items that were expensed but should have been capitalized, and assets that were sold but never removed, are listed for you to confirm before we post the correcting entries.
Do you use the fixed asset module in Xero or QuickBooks?
Xero's fixed asset register and Sage's modules handle the register and depreciation in the ledger, and we use them where you have them. QuickBooks Online has no full register, so we maintain one in a controlled workbook and post depreciation as a recurring journal that ties to it every month.
How do you handle vehicles bought on finance?
The vehicle is capitalized at full cost on the register, and the loan is recorded as a liability with its own amortization schedule. Each month, depreciation reduces the asset and the loan payment is split between principal and interest. Our loan reconciliation service keeps the liability side tied to the lender statement.
What happens when I sell or scrap an asset?
We remove the cost and its accumulated depreciation from the books, record the proceeds and post the gain or loss on disposal. Trade-ins are handled the same way, with the trade value applied to the new asset. Each disposal is logged in the register with the date and document.
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