Managing fixed assets is about much more than just counting chairs and laptops; it’s the art of tracking a company’s long-term physical and intangible investments from "cradle to grave."

As a Fixed Asset Executive, you are the guardian of the balance sheet’s non-current assets. Here is a breakdown of what the role typically entails.

Core Responsibilities

1. Asset Lifecycle Management

You are responsible for the entire "acquisition-to-disposal" process. This ensures that every piece of equipment is accounted for throughout its useful life.

• Capitalization: Determining if a purchase meets the company’s "threshold" to be treated as a fixed asset rather than an expense.

• Tagging & Tracking: Assigning unique identification tags to physical assets and maintaining a master database (Fixed Asset Register).

• Disposals & Transfers: Recording when assets are sold, scrapped, or moved between departments to ensure the books stay accurate.

2. Financial Accounting & Depreciation

This is the technical heart of the role. You ensure the company's financial statements reflect the true value of its property, plant, and equipment (PP&E).

• Depreciation Schedules: Calculating monthly depreciation using methods like straight-line or double-declining balance.

• Month-End Closing: Preparing journal entries and reconciling the Fixed Asset Ledger against the General Ledger.

• Impairment Testing: Identifying if an asset’s market value has dropped significantly below its book value.

3. Auditing & Compliance

• Physical Verification: Conducting "floor-to-sheet" and "sheet-to-floor" counts to confirm assets actually exist.

• Tax Compliance: Managing records for tax depreciation (which often differs from book depreciation).

• Audit Support: Providing documentation and schedules for internal and external auditors.