This article is part of a larger series on Accounting Software.
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:
- AssetAccountant: Best overall fixed asset management software when integrated with QuickBooks Online
- Xero: Best fixed asset management software within a full cloud-based bookkeeping 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
Comparison of Best Fixed Asset Accounting Software for Small Businesses
Accounting for fixed assets can be complicated. Check out our article about fixed asset accounting to learn the three most important concepts you need to know.
AssetAccountant: Best Overall Fixed Asset Management Software When Integrated With QuickBooks Online
- Not a substitute for accounting software
- Requires a higher plan to account for disposals
- Limited implementation partners to help you set up AssetAccountant in your business
Plans & Pricing
All plans of AssetAccountant are good for unlimited users:
- Free: $0 for up to 10 assets
- Lite: $5 per month per 100 assets
- Basic: $10 per month per 100 assets
- Standard: $15 per month per 100 assets
- Standard + Leases: $45 per month per 100 assets
Annual pricing and volume discounts are available upon request. Contact AssetAccountant for more information.
AssetAccountant with QuickBooks Online offers a complete solution for general accounting needs and fixed asset tracking. It fills in the gap of QuickBooks Online’s lack of fixed asset management features. It covers all the aspects of fixed asset accounting from purchase to subsequent depreciation and maintenance and, ultimately, to the fixed asset’s disposal.
Its lease accounting features help you track fixed assets under finance lease, operating lease, or lease with repurchase agreements. More importantly, AssetAccountant’s ability to use standard depreciation methods and MACRS makes it a comfortable pick for computing tax depreciation savings and reconciling book-to-tax depreciation.
If you only have very basic fixed asset needs and are looking for an all-in-one bookkeeping solution without the need for accounting integration, consider Xero, which is a complete accounting software with a dedicated fixed asset manager. If your fixed asset tracking needs have no complexities, like lease accounting or asset revaluations, Xero would be a better pick.
Xero: Best Fixed Asset Management Software Within a Cloud-based Accounting Platform
- No built-in lease accounting features
- No MACRS method
- No built-in features to account for impairment
Plans & Pricing
All plans come with unlimited users and fixed asset manager:
- Early: $13 per month
- Growing: $37 per month
- Established: $70 per month
Xero is a small business accounting software with a dedicated fixed asset manager. We picked it for users who would like to have a two-in-one solution for accounting and fixed asset management. Its fixed asset manager is decent and can help you track fixed asset purchases, depreciation, and disposal.
However, you should consider integration with AssetAccountant if you need advanced features like lease, impairment, and revaluation accounting. Another viable alternative would be Asset Panda, especially if you have assets in multiple locations. Asset Panda’s barcode scanning feature makes it easy for you to capture fixed assets on the floor.
QuickBooks Accountant Desktop: Best for Bookkeepers With Many Clients
- Only for QuickBooks Desktop ProAdvisors
- Not a product sold to end-users, such as businesses
- Requires Accountant Copy to transfer files from client to bookkeeper
Plans & Pricing
QuickBooks Accountant Desktop comes in two membership levels:
- ProAdvisor Premier Software Bundle: $799 per year, per ProAdvisor
- ProAdvisor Enterprise Software Bundle: $1,299 per year, per ProAdvisor
Each includes the platform and a ProAdvisor membership.
QuickBooks Accountant Desktop is a special product intended for bookkeepers and CPAs. It has features that let practitioners review and adjust clients’ books and fix client errors in bookkeeping. We picked QuickBooks Accountant Desktop because it is the only QuickBooks Desktop version with a fixed asset manager.
Bookkeepers with many clients can use QuickBooks Desktop to provide fixed asset management. If you’re not a bookkeeper, we recommend Xero instead since it’s also an accounting software that’s not a product catering solely to bookkeepers.
Asset Panda: Best for Tracking Tangible Assets Using Barcodes
- Only uses straight-line depreciation
- No transparent pricing
- Lease accounting and depreciation tracking are add-ons
Plans & Pricing
Asset Panda’s is custom priced depending on the needs of the users. The quoted price will include the following:
- IT and general asset management module
- Unlimited users
- 24/7 support via email
- Customizable fields and workflows
- Cloud-based access
- Mobile app access for iOS and Android
- Single sign-on (SSO) and authentication
Asset Panda is a good pick for businesses needing to track both tangible and intangible assets. Whether it’s software, furniture, laptops, or office refrigerators, Asset Panda is a one-stop solution for tracking fixed assets. Its barcode scanning feature lets you create unique barcodes for each fixed asset. You can print and paste the barcode to the body of the fixed asset and use it as a label.
The only downside is that Asset Panda doesn’t integrate with accounting software, meaning you’ll need to make journal entries to record depreciation and disposals. If you don’t want to make fixed asset journal entries in your accounting platform, we recommend AssetAccountant instead because it integrates with QuickBooks Online and Xero.
AssetExplorer: Best for IT Asset Tracking & Software License Management
- No web version
- Tracks only IT-related hardware and assets
- Not ideal for businesses with no IT infrastructure
- Not ideal for businesses without an IT department
- No MACRS depreciation
Plans & Pricing
AssetExplorer’s plans are license-based and include free annual maintenance service. You can use each license until the limit. You can try AssetExplorer for 30 days to track 250 IT assets. Otherwise, you can proceed to the Free plan that lets you track 25 IT assets. Here are its paid options:
- 250 IT assets: $955 per year
- 500 IT assets: $1,795 per year
- 1,000 IT assets: $2,995 per year
- 1,500 IT assets: $4,195 per year
- 2,000 IT assets: $4,795 per year
- 3,000 IT assets: $7,195 per year
- 5,000 IT assets: $9,595 per year
- 10,000 IT assets: $11,995 per year
- Additional 1,000 IT assets for 10,000 IT assets pack: $1,195 per year
We picked AssetExplorer for small businesses that mainly use IT assets or businesses with a sophisticated IT infrastructure. Because AssetExplorer specializes in IT asset tracking, it is the best tool for managing everything IT. You can track computers, laptops, routers, internet and intranet connections, and databases.
However, businesses with simple IT assets may find AssetExplorer too complex for their needs. We recommend Asset Panda instead, as it can also track IT assets and offers a more user-friendly interface for small businesses. It’s easier to use than Asset Explorer, especially if your business has simple fixed asset management needs.
How We Evaluated the Best Fixed Asset Software for Small Businesses
We considered all fixed asset management features that’ll help small businesses effectively manage fixed assets at 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 assets 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 in 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.
How To Choose a Fixed Asset Management Software
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 is 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.
The best fixed asset accounting software should help your business track all fixed assets, record depreciation for tax and financial purposes, and aid in disposal. Overall, the platform should help you monitor, maintain, and protect your fixed assets.