An asset register is a method used in accounting to track an individual's or organization's assets. Such a register can contain a complete list of all assets owned, including investment and intangible assets. The most common type of asset register is probably a fixed asset register (FAR), which tracks only fixed assets.

Fixed assets are those consisting of property, equipment, intellectual property and other items of great value. This includes land, buildings, machines, and vehicles. Intellectual property refers to assets that are not tangible, including patents, copyrights, trademarks and goodwill. While a current assets register would contain items such as supplies, prepaid assets and cash on hand, only assets that are a standard part of an organization’s depreciation activities are included in a FAR.

When an asset register is created, an organization uses a systematic approach, with assets listed in alphabetical order or, perhaps, by location. Whatever method is chosen, a labeling system is often required. This consists of labeling assets with easy-to-read numbers. These numbers are also listed on the asset register to make it easier to determine the physical location of the assets. When companies own a large number of different assets, labeling the assets is vital in the asset verification processes.

One purpose of an asset register is to simplify recordkeeping. The document becomes a reference for business purposes and for asset tracking. An asset register is also used for depreciation purposes. When organizations calculate depreciation for fixed assets, the register is updated. It offers a complete listing in one location of all assets, which provides an easy way for accountants to find information regarding the assets and their values.

An asset register is particularly helpful when a company calculates depreciation. This is a standard part of accounting in which a portion of each asset’s value is expensed out for a specified period. Depreciation is generally calculated annually for tax and insurance purposes. A FAR contains the name of each asset and the asset’s book value. The book value of an asset is the asset’s original value minus the total amount depreciated.

Most organizations use a software program specifically designed to track assets. A software program helps organize the asset list and is uniquely created to allow accountants the ability to track each asset and the value of each. Other organizations track assets through a spreadsheet program or an asset register template.

Asset registers are also beneficial for asset tracking. Organizations occasionally take inventory to verify the existence of all assets. The asset register, therefore, should contain every asset the company owns. An employee matches each item on the register to the actual asset owned.

Auditors also use asset registers as part of standard auditing procedures. It is vital in organizations that the asset register is completely accurate. Auditors verify the existence of assets using random methods. When this occurs, the auditor chooses an asset off the list and physically inspects the asset. This verification process is used to ensure that the organization’s accounting books are precise.