Accounting Software | Fixed Assets & Depreciation
Depreciation for the books, capital allowances for the tax. Both from one register.
Asset register with categories. Accounting depreciation over useful life for the books. Capital allowances computed in parallel for the tax return, because the two answers are never the same and the difference is what the deferred tax rests on. Straight line, reducing balance, units-of-production. Disposal posts inline with the balancing adjustment. CWIP tracked separately. Physical verification supported.
What the system does
Capability, input, output.
| Capability | Input | Output |
|---|---|---|
| Asset register | Asset master + category + acquisition cost | Asset record with audit trail |
| Accounting depreciation | Useful life + method per category | Books depreciation per period |
| Capital allowances | Asset category + claim position | Allowance computation in the parallel tax book |
| Disposal handling | Disposal proceeds + asset record | Balancing adjustment posted on both books |
| CWIP tracking | Capital expenditure pre-commissioning | CWIP balance with commissioning trigger |
| Physical verification | Asset master + barcode scan | Verification report with shortfall |
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Asset register
- Input
- Asset master + category + acquisition cost
- Output
- Asset record with audit trail
-
Accounting depreciation
- Input
- Useful life + method per category
- Output
- Books depreciation per period
-
Capital allowances
- Input
- Asset category + claim position
- Output
- Allowance computation in the parallel tax book
-
Disposal handling
- Input
- Disposal proceeds + asset record
- Output
- Balancing adjustment posted on both books
-
CWIP tracking
- Input
- Capital expenditure pre-commissioning
- Output
- CWIP balance with commissioning trigger
-
Physical verification
- Input
- Asset master + barcode scan
- Output
- Verification report with shortfall
Compliance + integrations
Two books, one source.
Accounting depreciation for the statutory accounts, capital allowances for the tax computation. Both computed from the same asset register and reconciled at year end, which is the point at which teams doing this in two spreadsheets discover the registers no longer agree.
Regulations we work within
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Useful life and componentisation
Useful-life depreciation, with component depreciation where the asset warrants it.
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Capital allowances
Computed in parallel for the tax computation, with the claim position per asset.
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Balancing adjustment
Disposal handled on both books, with the balancing charge or allowance surfaced.
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Deferred tax
The difference between the two books carried as the deferred tax workpaper.
Connects to
- Xero Asset register sync
- Barcode scanner Physical verification
Fixed Assets & Depreciation FAQ
What buyers ask.
Depreciation and capital allowances. How does the system handle both?
Two books run in parallel from the same asset register: accounting depreciation over useful life for the statutory accounts, and capital allowances for the tax computation. They rarely agree, which is the whole reason deferred tax exists, and the reconciliation between them drops as a workpaper rather than being rebuilt each year. Talk to us about which allowance categories are configured today and we will tell you straight.
What about intra-group asset transfer?
Intra-group asset transfers are supported, and for a holding company moving assets to or from a regional subsidiary they are common enough to be worth getting right. The transferring entity records the disposal and the receiving entity the acquisition, with both books adjusted and the group elimination handled at consolidation so the asset does not appear twice.
Capital Work-in-Progress (CWIP)?
CWIP is tracked separately from operational assets. Capital expenditure accumulates as CWIP until the commissioning event. On commissioning, CWIP capitalises to the asset register and depreciation starts.
Physical verification of fixed assets?
Yes. The physical verification module supports periodic audits with barcode or serial scan. Discrepancies (asset not found, location change, condition change) are surfaced for resolution. Auditors get a verification report at FY-end.
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Bring your asset register. Run both depreciation books on it.
Upload your asset register. The accounting depreciation and the capital allowance computation run in parallel, and the reconciliation between them surfaces in minutes.