A CPA is confused and concerned that their company does not follow proper fixed asset accounting, including not booking depreciation, not removing destroyed assets, inconsistently capitalizing installation costs, and lacking a fixed asset schedule, resulting in inaccurate financial statements.

Workarounds Described

• Uses historical cost indefinitely without depreciation entries
• Does not remove destroyed assets from books; offsets with insurance reimbursements causing credit balances
• Does not capitalize installation costs if invoiced separately
• No fixed asset schedule; possibly relies on manual spreadsheets or none

Implied Software Gaps

• Automated depreciation calculation and posting
• Asset disposal workflow ensuring removal and proper insurance accounting
• Capitalization logic for installation costs regardless of invoice bundling
• Centralized fixed asset register with schedule and reporting

AssetLedger Pro

A cloud-based fixed asset management software that automates depreciation, asset tracking, disposal, and insurance reimbursement reconciliation. It ensures accurate financial reporting and compliance by providing a centralized asset register and automated journal entries.