Adding a Fixed Asset

Record your business equipment in Officaid

Get your equipment on record in minutes

Adding a fixed asset to Officaid takes just a few minutes, but the benefits last for years. Once recorded, your assets are easier to manage, depreciation is calculated automatically, and you always know what your business owns and what it's worth.

This guide walks you through adding a new fixed asset, explaining each field along the way.

Before You Begin

You don't need much to add a fixed asset, but having these details ready will speed things up:

The purchase cost and date you acquired the asset
A name and category to identify the asset
Optional details like serial number, model number, and warranty expiration date
Your preferred depreciation method and rate (if applicable)

If you've already recorded the purchase as an expense or payable in Officaid, you can link the asset to that transaction. This keeps your financial records connected and avoids duplicate data entry.

Step-by-Step Guide

1 Navigate to Finance → Fixed Assets from the main menu
2 Click the + Add New Fixed Asset button in the top right corner
3 Fill in the asset details (explained in the next section)
4 Configure your depreciation settings in the Depreciation Info panel
5 Set the asset's Status (defaults to Available)
6 Click Add to save the asset

Understanding the Asset Fields

The Fixed Asset Details form is divided into two sections: the main details on the left and the depreciation and status settings on the right.

Main Details

Category – Select the type of asset (e.g., Office Equipment, Computers and Electronics, Furnitures and Fixtures, Vehicles)
Tag – A unique identifier for this asset. Use your own numbering system or leave blank for an auto-generated tag
Name – A descriptive name for the asset. "MacBook Pro 14-inch" is more helpful than just "Laptop"
Purchase Cost – The amount you paid, excluding tax if you're claiming input tax credit (see below)
Currency – Defaults to your primary currency but can be changed for foreign purchases
Purchase Date – When you acquired the asset. Defaults to today but should reflect the actual date
Link asset to Expense/Payable – Toggle on to connect to an existing transaction

Product Information

Serial Number – The manufacturer's serial number. Useful for warranty claims and insurance
Model Number – The product code. Helpful for ordering parts or looking up specifications
Warranty Expire Date – When coverage ends. Helps you plan for potential repair costs
Description – Any additional notes about location, usage, or handling instructions

Depreciation Info

Method – Choose Straight Line, Declining Balance, or None
Depreciation Rate (%) – The annual percentage the asset loses in value, calculated monthly
Current Book Value – The asset's value after depreciation. Starts at purchase cost for new assets

Status

Status – The asset's current state: Available, Assigned, Maintenance, or Disposed

Should Purchase Cost Include Tax?

Whether to include sales tax, GST, or VAT in your purchase cost depends on your tax registration status and whether you plan to claim input tax credit.

If you're tax-registered and claiming input tax credit: Enter the purchase cost excluding the tax component. Since you'll recover the tax through your input tax credit claim, it shouldn't be included in the asset's value or depreciation calculations.

If you're not tax-registered or not claiming input tax credit: Enter the full purchase cost including any tax paid. The tax becomes part of your asset's cost and will be depreciated along with the rest of the value.

For example, if you purchased equipment for $1,000 plus $100 in tax:

Claiming input tax credit: Enter $1,000 as the purchase cost
Not claiming input tax credit: Enter $1,100 as the purchase cost

Why does this matter? When you pay tax on a purchase, there are two ways to recover that cost:

Input tax credit – You claim the tax back directly from the tax authority
Depreciation – You include the tax in the asset cost and recover it gradually as a business expense over time

You can only use one method. If you claim input tax credit and include the tax in your purchase cost, you're recovering the same money twice. So the simple rule is: if you're getting the tax back through input tax credit, leave it out of your purchase cost.

Not sure which applies to you? Check with your accountant, reach out to the Officaid Community, or contact our support team for guidance.

Depreciation Settings

The Depreciation Info panel on the right side controls how the asset's value decreases over time.

Method options:

Straight Line – Spreads depreciation evenly across the asset's life
Declining Balance – Front-loads depreciation, recording more in early years
None – No depreciation calculated for this asset

Depreciation Rate (%) is the annual percentage by which the asset loses value. For example, a rate of 10% means the asset loses 10% of its value each year. Officaid calculates this monthly.

Current Book Value shows the asset's value after depreciation has been applied. For new assets, it starts equal to the purchase cost. For existing assets you're adding to the system, you can enter the current value directly.

Not sure which depreciation method to use? See Understanding Depreciation for a detailed comparison of Straight Line and Declining Balance methods.

Setting the Asset Status

The Status field indicates where the asset is in its lifecycle. When adding a new asset, this defaults to Available, meaning it's ready to be used or assigned.

The four status options are:

Available – The asset is in your possession and ready for use
Assigned – The asset has been given to a team member
Maintenance – The asset is being repaired or serviced
Disposed – The asset is no longer in use

For most new assets, you'll leave this as Available. You can change the status later as the asset moves through its lifecycle.

To assign an asset to a team member, you'll need to do this from the Team module through the team member's profile. See Assigning Assets to Team Members for more details.

Tips for Better Asset Records

Use consistent naming conventions across your assets. If you name one computer "MacBook Pro 14-inch (2024)", use the same format for others. This makes filtering and searching much easier.

Be specific with names. "Conference Room Projector" is better than "Projector" when you have multiple projectors
Record serial numbers. They're invaluable for warranty claims and insurance purposes
Set warranty dates. A quick filter can show you which assets are approaching the end of their warranty coverage
Choose accurate purchase dates. This affects depreciation calculations, so use the actual acquisition date rather than the date you're entering the record
Link to purchase transactions. If the expense or payable already exists in Officaid, linking it creates a complete financial trail

Double-check the purchase cost before saving. This value is used for depreciation calculations, so errors will compound over time. If you make a mistake, you can edit the asset later, but it's easier to get it right the first time.

Frequently Asked Questions

Can I add an asset without a purchase cost?

The purchase cost is required because it's used as the basis for depreciation calculations and appears in your financial records. If you received an asset as a gift or don't know the original cost, enter your best estimate of its fair market value at the time you acquired it.

What if I bought multiple items in one purchase?

You have two options. If the items are identical (like five of the same chair), you can create separate asset records for each one with the individual cost. If you bought different items in a single transaction, you can link multiple assets to the same expense or payable using the Shared Purchase Link feature. See Linking Assets to Purchase Transactions for details.

Can I edit an asset after adding it?

Yes. Click the edit icon (pencil) next to any asset in the Fixed Assets list to update its details. You can change any field including the purchase cost, depreciation settings, and status.

What depreciation rate should I use?

Depreciation rates vary by asset type and local tax regulations. Common rates range from 10% to 33% annually, with computers and electronics typically depreciating faster than furniture or vehicles. Check your local tax guidelines or consult with an accountant for rates that apply to your situation.

Do I need to add assets I already own?

It's recommended, especially for valuable items. When adding existing assets, enter the original purchase cost and date, then set the Current Book Value to reflect the asset's current worth after any depreciation that has already occurred. Officaid will calculate future depreciation from there.

What's Next?

Now that you know how to add assets, explore these related features:

Linking Assets to Purchase Transactions – Connect assets to existing expenses or payables
Understanding Depreciation – Learn when to use Straight Line vs Declining Balance
Fixed Asset Statuses and Lifecycle – Manage assets as they move through different stages

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