What Is an Asset Register?
An asset register, also known as asset inventory, is a way of tracking your assets so that businesses know the condition and status of each piece of equipment. An asset can be anything that is worth money to you or your business, including but not limited to:
- hardware (computers, printers, etc.)
- software (programs and applications)
- office supplies
Using an asset register as a tool can help you to easily keep track of all the assets you have in your business. You can add new assets and track the purchase price, depreciation, maintenance costs, and more.
Generally, creating an asset register will help you:
- Find out how much profit you are making from each asset
- Keep track of maintenance costs
- See which assets are most profitable and which ones need replacing
Why Are Asset Registers Important?
Asset registers are important because they help you keep track of the assets in your company and make sure that you are not being taxed on them. The government requires you to keep an asset register for all of your assets, including physical ones like computers and vehicles, but also intangible ones like trademarks or patents.
If you do not have an asset register, then it is very possible that the government will tax you on certain assets they believe belong to your company, even if they actually belong to another company or person. This can happen when someone else has a similar name or brand as yours, which is why it is best to use a unique name for your business.
How Do I Make an Asset Register for My Business?
Asset registers are a great way to keep track of your and your business's assets. They can be used as a tool to help you manage your finances and ensure that you are able to make smart decisions when it comes to purchasing or selling assets.
Here is how to create an asset register:
- Make a list of all the items you own that could be considered assets — this could include everything from furniture and computers to office supplies and inventory items like raw materials or finished goods.
- Determine how much each item costs by researching similar items online or asking friends who are familiar with them. Be sure to include any labor costs associated with making something yourself!
- Once you have determined the value of each item on your list, add them together to calculate the total value of all your assets. This number should be entered into the first column on each page (labeled "Total") for tracking purposes.