Fixed Assets
Fixed Assets is the register of things your business owns and uses for years, such as machines, vehicles, computers and furniture, along with their depreciation.
Why and when you use it
A ₹4,00,000 machine is not a one-month expense; its cost is spread over its useful life through depreciation. The fixed asset register keeps purchase cost, date and depreciation for each asset, which your CA needs for the balance sheet and tax returns. Owners also use it to know what they own and where it is.
Before you start
- Purchase bills or invoices for your assets
- The depreciation method and rates your CA wants used
Step by step
- Open Fixed AssetsClick Fixed Assets in the sidebar. A new account shows Welcome to Fixed Assets.
- Try with demo data (optional)Press Load Demo Data to see sample assets and how the register looks. Remove or ignore them before real use.
- Create an assetPress + Create Fixed Assets. Under Create Fixed Assets, enter the asset's name, purchase date, cost and the other details shown, then save.
- Use your CA's ratesDepreciation rules in your books and for income tax can differ. Enter the method and rate your CA gives you.
- Add every assetRepeat for each machine, vehicle, computer and item of furniture you use in the business.
- Review regularlyAt month end or year end, review the register with your CA and record sales or scrapping of assets.
Worked example
Patel Engineering Works buys a CNC lathe on 4 Nov 2026 for ₹6,40,000 plus GST, a Bolero pick-up for ₹9,20,000 and two computers for ₹1,10,000.
- Open Fixed Assets and press + Create Fixed Assets.
- Enter CNC lathe, 4 Nov 2026, ₹6,40,000, and the method and rate their CA advised; save.
- Repeat for the pick-up and the computers.
- Share the register with the CA at year end.
Result: All three assets are in the register with their cost and depreciation, ready for the balance sheet.
💡 Tips
- Record the asset on the date it was put to use, along with its purchase date.
- Keep the bill in Documents for each asset.
- Ask your CA how GST on capital goods should be claimed.
⚠️ Common mistakes
- Recording a machine as an expense in Expenses. Use Fixed Assets so profit is not understated.
- Leaving demo data mixed with real assets.
🎬 Video walkthrough (script — recording coming soon)
- Scene 1: Open Fixed Assets welcome screen.
- Scene 2: Load Demo Data to explore.
- Scene 3: + Create Fixed Assets for a CNC lathe.
- Scene 4: Explain CA's depreciation rates.
- Scene 5: Register with three assets.