An Asset Register is an important part of a not-for-profit’s financial records.
It’s used to record the details of all the fixed assets that your organisation owns or leases. This can include assets you bought new, second hand or were given. The types of assets you might include are:
- office equipment
- motor vehicles
- communications systems
So by fixed assets I mean assets that you use in your organisation over the longer term to produce income, but not assets that you would sell as part of your day to day operations (eg inventory).
A simple Asset Register may look as follows:
Include all costs incurred in making the asset usable – for example installation costs, computer cabling and delivery/transportation.
An up to date Asset Register will help with depreciation, insurance, statutory obligations and assist with decision-making in regard to further investment in assets. Furthermore, an auditor may request to see your Asset Register as part of your annual audit.
More tips and info on not-for-profit bookkeeping:
- Not for Profits – 6 ways your bookkeeping differs from other organisations
- What Does a Treasurer Do?
- Not for Profits – Keeping your finances in order