A fixed asset register lists everything a business owns to use for more than a year, such as vehicles, equipment, computers and furniture, with each asset's cost, useful life, depreciation and net book value. Enter your assets in the fixed asset register template above and depreciation is calculated up to today; open the Depreciation schedule tab to see one asset year by year under two methods, and the Fixed asset count tab to check the register against what is actually there.
Straight-line annual depreciation = (cost − residual value) ÷ useful life. A truck costing SAR 145,000 with a residual value of SAR 15,000 and a 5-year life depreciates by SAR 26,000 a year, and the seven assets in the example depreciate by SAR 61,271.43 a year.
How to use the fixed asset register
- Give each asset a permanent code you can label it with, then enter its name, the date it entered service and its full cost, including delivery and installation.
- Estimate its residual value at the end of its life and its life in years; annual depreciation, accumulated depreciation to date and net book value appear.
- In Advanced mode, add the category, the location and the monthly depreciation you book each month.
- At least once a year, copy the codes to the count sheet, check each asset in its place, then download the count report to sign.
You can download the fixed asset register in Excel, where accumulated depreciation is counted in days up to the date you open the file, or as a PDF for review and signature.
Calculating depreciation: straight-line and double-declining balance
Straight-line depreciation spreads the depreciable amount evenly over the years. Double-declining balance multiplies the book value at the start of each year by twice the straight-line rate, so depreciation is higher in the early years. For the truck in the example (double rate 40%):
| Year | Straight-line | Double-declining | Book value (declining) |
|---|---|---|---|
| 1 | 26,000.00 | 58,000.00 | 87,000.00 |
| 2 | 26,000.00 | 34,800.00 | 52,200.00 |
| 3 | 26,000.00 | 20,880.00 | 31,320.00 |
| 4 | 26,000.00 | 12,528.00 | 18,792.00 |
| 5 | 26,000.00 | 3,792.00 | 15,000.00 |
Both methods end at the residual value of SAR 15,000.00, and total depreciation under each is SAR 130,000.00. In the final year only the remainder is depreciated, so the book value never falls below the residual value.
Accumulated depreciation and net book value
Accumulated depreciation is the total charged against an asset since it entered service, and it appears on the balance sheet as a deduction from cost. Net book value is the difference between the two; it is not the price the asset would fetch on the market. The register works out accumulated depreciation by the share of the life that has passed in days, so an asset brought into use mid-year is not charged a full year.
Fixed asset count report
An asset count differs from a stock count: you do not count quantities, you confirm that each asset exists, its condition and its location. On the count sheet, mark each asset "Found", "Missing" or "Moved elsewhere" with its condition; a missing asset is highlighted, and the report lists the assets that need action with the committee's signatures. Use the blank form button to download an empty count report in Word and fill it in by hand on site.
Common mistakes
- Recording the purchase price alone, without delivery, installation and setup.
- Depreciating land; land is not depreciated, but a building on it is.
- Starting depreciation from the invoice date instead of the date the asset is ready for use.
- Writing off an asset that was not found in the count before investigating why it is missing.
- Capitalizing small recurring purchases, which bloats the register for no benefit.
Accounting and regulatory notes for Saudi Arabia
The useful lives and residual values in the template are estimates the business sets and reviews each year under the accounting standards endorsed by the Saudi Organization for Chartered and Professional Accountants (SOCPA). Depreciation allowed for income tax has its own rates and asset groups in the Implementing Regulations of the Saudi Income Tax Law, and assets in the zakat base follow their own rules; check the current texts with the Zakat, Tax and Customs Authority (ZATCA), because the template does not calculate them.
When the asset register does not match the depreciation entries
At Microtec we build Microtec accounting software, an ERP that brings sales, purchasing, inventory, finance and HR into one place, so assets and their entries sit in the same books instead of a separate sheet that needs reconciling.
Frequently asked questions
How do I calculate depreciation on fixed assets?
With the straight-line method, subtract the residual value from the cost and divide the result by the useful life in years. An asset costing SAR 98,000 with a residual value of SAR 8,000 and an 8-year life depreciates by SAR 11,250 a year.
When should I use double-declining balance?
For assets that lose most of their usefulness in the early years, such as vehicles and computers. Choose one method for each class of assets and apply it consistently from year to year.
What is the difference between an asset register and an asset count?
The register is an accounting record of cost, depreciation and book value. The count is a physical check that every asset in the register is in its place and usable, and its results are entered in the register once the count report is approved.