What are fixed assets?
Fixed assets are valuable items your business owns and uses for more than one year. Instead of recording the full cost as an expense when you buy them, you spread the cost over the years you use them. This is called depreciation.
Common examples:
Vehicles – cars, vans, trucks
Computer Equipment – laptops, desktops, servers
Furniture and Fixtures – desks, chairs, shelving
Office Equipment – phones, copiers, projectors
Machinery and equipment – manufacturing or specialised tools
Buildings – offices, warehouses
Land – does not lose value, so it is not depreciated
Leasehold Improvements – renovations to rented spaces
Why track fixed assets?
Accurate reports – assets show on your Balance Sheet, and depreciation shows on your Profit and Loss
Pay less tax – depreciation is a deductible expense that reduces your taxable income
Plan ahead – know what your assets are worth and when they need replacing
Be audit-ready – keep a complete register of everything your business owns
How fixed assets work in Cybooks
Every fixed asset goes through these steps:
Create as draft – enter the details (name, cost, how long it will last). Nothing hits your accounts yet.
Register – this activates the asset and gives it a number (like FA-1). If the asset has been in use for a while, Cybooks works out the depreciation you have missed and catches up automatically.
Depreciate each month – Cybooks calculates the monthly amount and creates the accounting entries for you.
Fully depreciated – when the value reaches the residual amount, depreciation stops. The asset stays on your books until you remove it.
Dispose – when you sell, scrap, donate, or exchange the asset, Cybooks records the removal and any profit or loss.
Where to find fixed assets
Go to Fixed Assets in the sidebar. Your assets are sorted into four tabs:
Draft – created but not yet activated
Registered – currently being depreciated
Fully Depreciated – reached their end value
Disposed – sold, scrapped, donated, or given away
Key terms
Term | What it means |
Purchase price | How much you paid for the asset |
Residual value | What you expect the asset to be worth at the end of its life (sometimes zero) |
Useful life | How many years you expect to use the asset |
Depreciable amount | Purchase price minus residual value – this is the total amount that will be depreciated |
Accumulated depreciation | The total depreciation recorded so far |
Book value | Purchase price minus accumulated depreciation – what the asset is currently worth on your books |
Asset number | A unique reference assigned when you register the asset (e.g. FA-1, FA-2, FA-3) |
What to do next
Set up your asset types – these are categories like Vehicles or Computer Equipment that control how depreciation works
Create your first asset – add one from a purchase, an opening balance, or another source
Register and depreciate – activate the asset and let Cybooks handle the rest