There will come a time when running a business where you will need to start thinking about the little things.
Sure, you’ve rented an office and you have budgeting for the business to maximise profit, but what about the other assets you have to your name?
Everything you own as part of a business is an asset. Your building, company car, phone, computer, cables, pens and everything else in the office is your asset.
It is important for any business to make sure that their assets are intact and that they are all accounted for because it is value which you put into your venture.
This is why a fixed asset register is something every business should do, and today we are going to look at how.
When you are looking to create an asset register you will have to count up and look into every part of the office to count up all of your devices and anything else which sits fixed in place.
For example it is unlikely that you will take a chair home or move your phones so these will be classed as assets. Make sure you have a list of everything in the offices and then you can also think about writing down the brand and model if you know it.
Value and date bought
If you have been smart and kept records for everything in the office then this will help you greatly in this next step. For this you will want to collect the receipts for everything you have bought and note the date you bought it.
This will help you to estimate the value of the product due to its age and will make things easier for you later on.
Now that you have some basic information you can go one step further with this and stuff the serial numbers for every product you have in the office.
The reason for this is that you can pinpoint which device is which and this will help over time when items break or need replacing for whatever reason.
You will also be able to print off product labels which you can fill in with the details of the asset for future audits.
When you buy a product such as a computer or a phone you will most likely get a warranty with this which will state how long you have to return the product for a full refund.
This is a crucial part of your asset register because if something does break you will be able to refer to your spreadsheet and immediately say whether you can send out for a new one or not. It makes things much easier for you when trying to keep track and save money.
Depreciation is a value which goes down after the date it is bought. For example a car which was worth £20,000 new might only be worth £13,000 after a year or two because it has been used.
You need to try and estimate depreciation for every item you have and work out how their value will change over the years, and this will help when calculating the worth of your assets.