The best fixed asset management software should let users compute financial and tax depreciation, track the status and condition of fixed assets, and manage all fixed asset details. On top of that, software asset tracking is a required feature for businesses with information technology (IT) assets. With that in mind, here are our top picks for the best fixed asset management software for small businesses:
- QuickBooks Online: Best overall when integrated with AssetAccountant
- Xero: Best fixed asset manager in cloud-based accounting software
- QuickBooks Accountant Desktop: Best for bookkeepers with many clients
- Asset Panda: Best for tracking tangible assets using barcodes
- AssetExplorer: Best for IT asset tracking and software license management
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- Best Fixed Asset Accounting Software for Small Business Compared
- QuickBooks Online: Best Overall Fixed Asset Management Software When Integrated With AssetAccountant
- Xero: Best Fixed Asset Management Software Within Cloud-based Accounting Platform
- QuickBooks Accountant Desktop: Best for Bookkeepers With Many Clients
- Asset Panda: Best for Tracking Tangible Assets Using Barcodes
- AssetExplorer: Best for IT Asset Tracking & Software License Management
- How We Evaluated the Best Fixed Asset Software for Small Businesses
- Frequently Asked Questions (FAQs)
- Bottom Line
Best Fixed Asset Accounting Software for Small Business Compared
| Pricing | Number of Assets Tracked | MACRS | Straight-line Method | Declining Balance Method | Units of Production | |
|---|---|---|---|---|---|---|
| Both for $38 to $275 monthly | Price varies per 100 assets | ✓ | ✓ | ✓ | ✓ |
| Visit QuickBooks Online | ||||||
 | $20 to $80 per month | Unlimited | ✕ | ✓ | ✓ | ✕ |
| Visit Xero | ||||||
| $799 or $1,299 a year | Unlimited | ✓ | ✓ | ✓ | ✕ |
| Visit QuickBooks Accountant Desktop | ||||||
 | Custom quote | Custom quote | ✕ | ✓ | ✕ | ✕ |
| Visit Asset Panda | ||||||
 | $955 to $11,995 yearlyAdditional 1,000 IT assets for 10,000 IT assets pack: $1,195 per year | 250 to 10,000 | ✕ | ✓ | ✓ | ✕ |
| Visit AssetExplorer | ||||||
QuickBooks Online: Best Overall Fixed Asset Management Software When Integrated With AssetAccountant
| Accessibility | Cloud |
|---|---|
| MACRS Depreciation | ✓ |
| Depreciation Methods |
|
| Special Fixed Asset Accounting Features |
|
Xero: Best Fixed Asset Management Software Within Cloud-based Accounting Platform
| Accessibility | Cloud |
|---|---|
| MACRS Depreciation | ✕ |
| Depreciation Methods |
|
| Special Fixed Asset Accounting Features | If you integrate Xero with AssetAccountant, you can have the following features:
|
QuickBooks Accountant Desktop: Best for Bookkeepers With Many Clients
| Accessibility | Desktop |
|---|---|
| MACRS Depreciation | ✓ |
| Depreciation Methods |
|
| Special Fixed Asset Accounting Features | No built-in special fixed asset accounting features, but users can simply make journal entries to record special transactions. |
Asset Panda: Best for Tracking Tangible Assets Using Barcodes
| Accessibility | Cloud |
|---|---|
| MACRS Depreciation | ✕ |
| Depreciation Methods | Straight-line method only |
| Special Fixed Asset Accounting Features |
|
AssetExplorer: Best for IT Asset Tracking & Software License Management
| Accessibility | Cloud |
|---|---|
| MACRS Depreciation | ✕ |
| Depreciation Methods |
|
| Special Fixed Asset Accounting Features |
|
How We Evaluated the Best Fixed Asset Software for Small Businesses
We considered all fixed asset management features that will help small businesses effectively manage fixed assets with ease. Hence, the best fixed asset management software should possess the majority, if not all, of the following features:
- Multiple depreciation methods: The tool should provide users with a variety of options to depreciate their assets. Most importantly, it must also compute tax depreciation methods, like the MACRS, aside from common depreciation methods.
- Tangible and intangible fixed asset tracking: Ideally, the platform should accommodate all kinds of assets, whether tangible or intangible. For small businesses with software licenses, copyrights, or patents, you should consider a solution that can track intangibles.
- Financial and tax depreciation reconciliation: Reconciling financial and tax depreciation is important to report the correct amount of taxable income. In other words, you don’t need to adjust financial income to taxable income manually.
- Repairs and maintenance management: The software must account for repairs and maintenance activities and costs incurred so that you’ll know how many resources were used for a particular asset.
- Fixed asset disposal: The tool should simplify the fixed asset disposal process by automatically computing partial year depreciation and any resulting gain or loss from the sale.
- Fixed asset condition monitoring: The software records should have a way of tracking the fixed asset’s physical condition. Assignment of asset tags or barcodes can help with this feature.
- Lease accounting: Some small businesses may find leasing a cheaper option than buying a brand-new fixed asset. Hence, the fixed asset software should enable users to track lease payments, lease liabilities, and other lease items.
- Accounting software integration: A seamless integration with accounting tools makes it easy for your accountant to account for depreciation, repairs and maintenance, and disposal. It will be a big plus if your platform of choice is already an accounting platform.
There are different factors to consider when choosing a solution for fixed asset management. In most cases, you need to consider the following:
- Number of fixed assets in the business: If there are a lot of fixed assets used per count, a fixed asset software can be a tool that’ll help you record and monitor these assets. You can also control who can access or use fixed assets, especially if it’s difficult to track each manually.
- Value of fixed assets: Some fixed assets are expensive or critical to business operations. Tracking them through a specialized platform is one way of ensuring that they’re accounted for properly and that you’re enjoying tax savings from depreciation.
- Affordability: Some fixed asset management software is affordable, while others are expensive. You should take a closer look at your business to determine what kind of tool you can afford. Moreover, would you need a sophisticated asset tracker? Alternatively, would a simpler and more affordable option suffice?
- Location of users: In case you have a scattered workforce, a fixed asset management tracker is a big help in ensuring that all company-issued assets are assigned to employees for accountability. It’s harder to track fixed assets that are not physically present on the business premises. Hence, the use of fixed asset management software is useful for remote workers.
- Number of users: You also need to consider how many users have company-issued assets. If there are only a few, like fewer than 20, it would be more efficient to track them manually using a spreadsheet. But if tracking by spreadsheet takes time, considering a fixed asset management software may help you recover lost time.
Frequently Asked Questions (FAQs)
No, it can’t track fixed assets and record depreciation. We recommend integrating it with fixed asset management software like AssetAccountant to fill in this missing feature.
Tax savings on depreciation are the main reason why most businesses would track fixed assets. Depreciation expense reduces taxable income and income tax. If you account for all fixed assets, you can minimize tax payments effectively.
Fixed assets are long-term assets that a business owns or leases. These assets can be movable, such as vehicles, laptops, and furniture, or immovable, such as land, buildings, and office space.
Bottom Line
The best fixed asset accounting software should help your business track all fixed assets, record depreciation for tax and financial purposes, and aid in the disposal. Our best pick is AssetAccountant added as an integration to QuickBooks Online because it provides comprehensive depreciation accounting features that enable users to track both financial and tax depreciation. It can also be used for US GAAP and IFRS accounting.
