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Fixed Asset Register

The Fixed Asset Register is a comprehensive record of all your business's fixed assets, their values, depreciation, and current book values. Essential for accurate financial reporting and tax compliance.

What is a Fixed Asset Register?​

Shows:

  • All fixed assets - Complete list of assets owned
  • Asset details - Purchase date, cost, location, category
  • Depreciation - Accumulated depreciation and methods
  • Current value - Net book value of each asset
  • Disposal tracking - Sold or retired assets

Purpose:

  • Track asset ownership and value
  • Calculate depreciation for tax
  • Insurance and security
  • Financial statement preparation
  • Asset management and planning
  • Audit compliance

[SCREENSHOT: Sample Fixed Asset Register]

What are Fixed Assets?​

Definition: Assets expected to be used for more than one year and not easily converted to cash.

Examples:

CategoryAssets
PropertyLand, Buildings, Warehouses
VehiclesCompany cars, Trucks, Delivery vans
EquipmentMachinery, Tools, Manufacturing equipment
Furniture & FixturesOffice desks, Chairs, Cabinets
ComputersLaptops, Desktops, Servers, Printers
IntangiblesSoftware licenses, Patents, Trademarks

NOT Fixed Assets:

  • ❌ Inventory for resale
  • ❌ Office supplies (consumables)
  • ❌ Cash and bank balances
  • ❌ Accounts receivable
  • ❌ Short-term investments

[SCREENSHOT: Asset categories with icons]

Viewing Fixed Asset Register​

  1. Navigate to https://accounting.digit-tally.io/reports/fixed-asset-register
  2. Click Reports > Fixed Asset Register
  3. Select As of Date (e.g., "Jan 31, 2026")
  4. Optional: Filter by category or location
  5. Click View Register

[SCREENSHOT: Access Fixed Asset Register]

Asset Register Format​

Summary View​

Asset IDAsset NameCategoryPurchase DateCostAccumulated DepreciationNet Book Value
FA-001Office BuildingPropertyJan 15, 2020NGN 50,000,000NGN 5,000,000NGN 45,000,000
FA-002Toyota HiluxVehiclesMar 10, 2022NGN 15,000,000NGN 6,000,000NGN 9,000,000
FA-003Generator 200KVAEquipmentJun 5, 2021NGN 8,000,000NGN 2,400,000NGN 5,600,000
FA-004Dell Laptops (5)ComputersSep 1, 2023NGN 2,500,000NGN 1,250,000NGN 1,250,000
FA-005Office FurnitureFurnitureJan 15, 2020NGN 3,000,000NGN 1,800,000NGN 1,200,000
TotalNGN 78,500,000NGN 16,450,000NGN 62,050,000

[SCREENSHOT: Complete asset register summary]

Detailed Asset View​

Click any asset to see full details:

Asset: Toyota Hilux (FA-002)

FieldValue
Asset IDFA-002
Asset NameToyota Hilux 2022
CategoryVehicles
Sub-CategoryCommercial Vehicle
Purchase DateMar 10, 2022
Purchase CostNGN 15,000,000
Useful Life5 years
Salvage ValueNGN 3,000,000
Depreciation MethodStraight Line
Annual DepreciationNGN 2,400,000
Accumulated DepreciationNGN 6,000,000 (2.5 years)
Net Book ValueNGN 9,000,000
LocationLagos Office
Serial/VINJT4X39C0XK3012345
ConditionGood
Last MaintenanceDec 15, 2025

[SCREENSHOT: Detailed asset information page]

Asset Categories​

Standard Categories​

1. Property

  • Depreciation: 2-4% per year (25-50 years)
  • Examples: Land (not depreciated), Buildings, Warehouses
  • Tax Treatment: Capital allowance available

2. Vehicles

  • Depreciation: 20-25% per year (4-5 years)
  • Examples: Cars, Trucks, Motorcycles, Vans
  • Tax Treatment: Wear and tear allowance

3. Equipment & Machinery

  • Depreciation: 10-20% per year (5-10 years)
  • Examples: Manufacturing equipment, Tools, Generators
  • Tax Treatment: Initial and annual allowances

4. Furniture & Fixtures

  • Depreciation: 10-20% per year (5-10 years)
  • Examples: Desks, Chairs, Shelving, Display units
  • Tax Treatment: Wear and tear allowance

5. Computers & IT

  • Depreciation: 25-33% per year (3-4 years)
  • Examples: Laptops, Servers, Printers, Software
  • Tax Treatment: Accelerated depreciation available

6. Intangible Assets

  • Amortization: 10-20% per year (5-10 years)
  • Examples: Software licenses, Patents, Goodwill
  • Tax Treatment: Amortization deductible

[SCREENSHOT: Asset categories with depreciation rates]

Custom Categories​

Create custom categories for your business:

  1. Click Settings > Asset Categories
  2. Click Add Category
  3. Enter:
    • Category name
    • Default depreciation method
    • Default useful life
    • Tax treatment
  4. Save category

[SCREENSHOT: Add custom asset category]

Depreciation Tracking​

Depreciation Methods​

1. Straight Line Method (Most Common)

Formula:

Annual Depreciation = (Cost - Salvage Value) / Useful Life

Example:
Asset Cost:      NGN 15,000,000
Salvage Value:   NGN 3,000,000
Useful Life:     5 years

Annual Depreciation = (15,000,000 - 3,000,000) / 5
                    = NGN 2,400,000 per year

Depreciation Schedule:

YearOpening ValueDepreciationClosing Value
2022NGN 15,000,000NGN 2,400,000NGN 12,600,000
2023NGN 12,600,000NGN 2,400,000NGN 10,200,000
2024NGN 10,200,000NGN 2,400,000NGN 7,800,000
2025NGN 7,800,000NGN 2,400,000NGN 5,400,000
2026NGN 5,400,000NGN 2,400,000NGN 3,000,000

[SCREENSHOT: Straight line depreciation chart]

2. Reducing Balance Method (Accelerated)

Formula:

Annual Depreciation = Opening Value × Depreciation Rate

Example:
Asset Cost:        NGN 15,000,000
Depreciation Rate: 25% per year

Year 1: 15,000,000 × 25% = NGN 3,750,000
Year 2: 11,250,000 × 25% = NGN 2,812,500
Year 3: 8,437,500 × 25% = NGN 2,109,375

When to Use:

  • Assets that lose value quickly (technology, vehicles)
  • Tax planning (higher deductions early)
  • Matching expense to asset productivity

[SCREENSHOT: Reducing balance depreciation chart comparison]

3. Units of Production Method

Based on actual usage:

Depreciation per Unit = (Cost - Salvage) / Total Expected Units

Example:
Delivery Van Cost:     NGN 15,000,000
Expected KM:           300,000 km
Salvage Value:         NGN 3,000,000

Per KM Depreciation = (15,000,000 - 3,000,000) / 300,000
                    = NGN 40 per km

If driven 50,000 km in Year 1:
Depreciation = 50,000 × 40 = NGN 2,000,000

Best For:

  • Manufacturing equipment
  • Vehicles (based on mileage)
  • Assets with measurable usage

[SCREENSHOT: Units of production method setup]

Nigerian Tax Depreciation (Capital Allowances)​

Capital Allowance Rates (per Nigerian Tax Law):

Asset TypeInitial AllowanceAnnual Allowance
Building (Industrial)15%10%
Building (Non-Industrial)15%10%
Plant & Machinery50%25% (reducing balance)
Furniture & Fittings25%20% (reducing balance)
Motor Vehicles50%25% (reducing balance)
Computers50%25% (reducing balance)

Example - Motor Vehicle:

Asset Cost: NGN 15,000,000

Year 1:
  Initial Allowance (50%):    NGN 7,500,000
  Balance:                    NGN 7,500,000

Year 2:
  Annual Allowance (25%):     NGN 1,875,000
  Balance:                    NGN 5,625,000

Year 3:
  Annual Allowance (25%):     NGN 1,406,250
  Balance:                    NGN 4,218,750

[SCREENSHOT: Tax capital allowance calculator]

Tax vs Book Depreciation

Keep separate records for:

  • Book Depreciation - For financial statements (e.g., Straight Line)
  • Tax Depreciation - For tax returns (Capital Allowances)

Digit Tally tracks both automatically.

Asset Values​

Understanding Values​

1. Purchase Cost (Historical Cost)

  • Original purchase price
  • Plus: Installation, shipping, setup costs
  • Never changes after initial recording

2. Accumulated Depreciation

  • Total depreciation charged since purchase
  • Increases each year
  • Formula: Sum of all depreciation to date

3. Net Book Value (NBV)

  • Current value on balance sheet
  • Formula: Cost - Accumulated Depreciation
  • Decreases over time

4. Market Value

  • What asset could sell for today
  • May differ from NBV
  • Used for insurance and disposal

5. Salvage/Residual Value

  • Expected value at end of useful life
  • Used in depreciation calculations
  • Usually 10-20% of cost

[SCREENSHOT: Asset value breakdown visualization]

Asset Value Summary​

Total Asset Values (as at Jan 31, 2026):

Total Purchase Cost:              NGN 78,500,000
Total Accumulated Depreciation:  -NGN 16,450,000
                                 ---------------
Total Net Book Value:             NGN 62,050,000

Market Value (Estimated):         NGN 65,000,000
Insurance Value:                  NGN 70,000,000

By Category:

CategoryCostAccumulated Dep.Net Book Value% of Total
PropertyNGN 50,000,000NGN 5,000,000NGN 45,000,00072.5%
VehiclesNGN 15,000,000NGN 6,000,000NGN 9,000,00014.5%
EquipmentNGN 8,000,000NGN 2,400,000NGN 5,600,0009.0%
ComputersNGN 2,500,000NGN 1,250,000NGN 1,250,0002.0%
FurnitureNGN 3,000,000NGN 1,800,000NGN 1,200,0002.0%

[SCREENSHOT: Asset value summary by category with pie chart]

Adding New Assets​

Add Asset Form​

  1. Click Add New Asset
  2. Fill in details:

Basic Information:

  • Asset name
  • Asset ID (auto-generated or custom)
  • Category and sub-category
  • Purchase date
  • Supplier/Vendor

Financial Details:

  • Purchase cost (NGN)
  • Payment method
  • Invoice number
  • Salvage value
  • Useful life (years)

Depreciation:

  • Depreciation method
  • Start depreciation date
  • Depreciation rate (if applicable)

Additional Details:

  • Location
  • Serial number
  • Condition
  • Assigned to (employee)
  • Warranty expiry
  • Insurance policy
  1. Click Save Asset

[SCREENSHOT: Add new asset form]

Asset Purchase Entry​

Accounting Entry Created:

Dr. Fixed Asset - [Category]     NGN 15,000,000
    Cr. Bank Account                         NGN 15,000,000

(Recording purchase of Toyota Hilux)

Asset automatically added to Fixed Asset Register.

[SCREENSHOT: Asset purchase confirmation]

Asset Disposal​

Recording Asset Sales/Disposal​

When selling or disposing of an asset:

  1. Find asset in register
  2. Click Dispose Asset
  3. Enter disposal details:

Disposal Information:

  • Disposal date
  • Disposal method (Sale, Scrap, Trade-in, Donation)
  • Sale price (if applicable)
  • Buyer details

Example - Selling Old Vehicle:

Asset: Toyota Hilux (FA-002)
Purchase Cost:              NGN 15,000,000
Accumulated Depreciation:   NGN 6,000,000
Net Book Value:             NGN 9,000,000

Sale Price:                 NGN 10,000,000
Sale Date:                  Jan 31, 2026

Accounting Entry:

Dr. Bank Account                    NGN 10,000,000
Dr. Accumulated Depreciation        NGN 6,000,000
    Cr. Fixed Asset                             NGN 15,000,000
    Cr. Gain on Disposal                        NGN 1,000,000

Gain = Sale Price - Net Book Value
     = NGN 10,000,000 - NGN 9,000,000
     = NGN 1,000,000 (Profit)

[SCREENSHOT: Asset disposal form and calculation]

Disposal Outcomes​

1. Profit on Disposal (Sale Price > NBV)

  • Income on Profit & Loss
  • Good outcome

2. Loss on Disposal (Sale Price < NBV)

  • Expense on Profit & Loss
  • Tax deductible

3. Scrapped (No Sale)

  • Full loss = Net Book Value
  • Remove from register

[SCREENSHOT: Disposal profit/loss calculation]

Asset Maintenance​

Maintenance Tracking​

Record Maintenance:

  1. Select asset
  2. Click Add Maintenance
  3. Enter:
    • Maintenance date
    • Type (Routine, Repair, Upgrade)
    • Description
    • Cost
    • Next maintenance due
    • Service provider

Example Maintenance Record:

Asset: Generator 200KVA
Date: Jan 15, 2026
Type: Routine Maintenance
Description: Oil change and general servicing
Cost: NGN 85,000
Service Provider: Power Solutions Ltd
Next Service: Apr 15, 2026

[SCREENSHOT: Maintenance log with history]

Maintenance Accounting​

Routine Maintenance (Expense):

Dr. Repairs & Maintenance Expense    NGN 85,000
    Cr. Bank Account                          NGN 85,000

(Does not increase asset value)

Major Improvement (Capitalize):

Dr. Fixed Asset - Equipment          NGN 2,000,000
    Cr. Bank Account                          NGN 2,000,000

(Increases asset value, depreciated over remaining life)

Decision Rule:

  • Expense if: Maintains current condition
  • Capitalize if: Extends life or improves productivity

[SCREENSHOT: Maintenance vs capitalization decision guide]

Reports and Analytics​

Asset Summary Report​

Total Assets by Category:

  • Pie chart showing distribution
  • Total cost vs net book value
  • Depreciation by category

Asset Age Analysis:

  • New (0-2 years)
  • Current (2-5 years)
  • Old (5-10 years)
  • Very Old (10+ years)

Replacement Planning:

  • Assets nearing end of life
  • Estimated replacement cost
  • Replacement timeline

[SCREENSHOT: Asset summary dashboard with charts]

Depreciation Report​

Annual Depreciation Schedule:

YearOpening ValueAdditionsDisposalsDepreciationClosing Value
2022NGN 45,000,000NGN 15,000,000NGN 0NGN 3,200,000NGN 56,800,000
2023NGN 56,800,000NGN 10,500,000NGN 0NGN 4,150,000NGN 63,150,000
2024NGN 63,150,000NGN 8,000,000NGN 0NGN 4,900,000NGN 66,250,000
2025NGN 66,250,000NGN 5,000,000NGN 3,200,000NGN 5,100,000NGN 62,950,000
2026 (YTD)NGN 62,950,000NGN 0NGN 900,000NGN 0NGN 62,050,000

[SCREENSHOT: Multi-year depreciation report]

Tax Depreciation Report​

For FIRS Tax Returns:

Capital Allowances Claimed:

  • Initial allowances by asset class
  • Annual allowances by asset class
  • Total capital allowances
  • Tax savings estimate

Export for Accountant:

  • PDF summary
  • Excel detailed schedule
  • Capital allowance computation

[SCREENSHOT: Tax depreciation report for FIRS]

Export Options​

Export Formats​

1. PDF Export

  • Complete asset register
  • Summary by category
  • Depreciation schedules
  • Professional formatting
  • Use: Management reports, auditors, tax filing

2. Excel Export

  • All asset details
  • Multiple worksheets by category
  • Formulas included
  • Use: Detailed analysis, pivot tables

3. CSV Export

  • Raw data
  • Import to other systems
  • Use: Data migration, backups

[SCREENSHOT: Export options dialog]

Report Templates​

Available Templates:

  1. Summary Report - High-level overview
  2. Detailed Register - All asset information
  3. Depreciation Schedule - 5-year projection
  4. Tax Report - Capital allowances
  5. Asset Inventory - Physical verification list
  6. Disposal Register - Sold/scrapped assets
  7. Maintenance Log - Service history

[SCREENSHOT: Report template selector]

Best Practices​

Asset Management​

1. Regular Updates

  • ✅ Record new purchases immediately
  • ✅ Update depreciation monthly
  • ✅ Record disposals promptly
  • ✅ Review asset condition quarterly

2. Physical Verification

  • ✅ Annual physical count
  • ✅ Verify location and condition
  • ✅ Tag all assets
  • ✅ Reconcile with register

3. Documentation

  • ✅ Keep purchase invoices
  • ✅ Maintain warranty documents
  • ✅ File maintenance records
  • ✅ Photo documentation

4. Insurance

  • ✅ Adequate coverage
  • ✅ Update values annually
  • ✅ Review policy limits
  • ✅ Document claims

5. Security

  • ✅ Asset tagging/barcoding
  • ✅ Access controls
  • ✅ GPS tracking (vehicles)
  • ✅ CCTV coverage

[SCREENSHOT: Asset management best practices checklist]

Depreciation Policy​

Establish Clear Policy:

[Your Company] Fixed Asset Policy

Capitalization Threshold: NGN 100,000
(Items below this are expensed immediately)

Depreciation Methods by Category:
- Property: Straight Line, 2% per year
- Vehicles: Straight Line, 20% per year
- Equipment: Straight Line, 10-15% per year
- Computers: Straight Line, 25% per year
- Furniture: Straight Line, 10% per year

Salvage Value: 10-20% of cost
Review Period: Annually
Disposal Approval: Management approval for items > NGN 500,000

[SCREENSHOT: Sample depreciation policy document]

What's Next?​

Annual Asset Review

Conduct a comprehensive asset review every December:

  1. Physical verification of all assets
  2. Update depreciation rates if needed
  3. Identify assets for disposal
  4. Plan next year's capital expenditure
  5. Update insurance coverage

This ensures your register stays accurate and compliant.

Capitalization Threshold

Set a minimum amount (e.g., NGN 100,000) below which items are expensed immediately rather than capitalized. This reduces administrative burden for small purchases like office supplies while ensuring significant assets are properly tracked.

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