What belongs in a fixed asset register?

Include an asset identifier, description, class, location or owner, invoice reference, cost, acquisition date, in-service date, useful life, residual value, depreciation method, accumulated depreciation, and disposal details. Keep fully depreciated assets on the register while they remain in use.

What capitalization threshold should a small company use?

Set a written book policy based on materiality and apply it consistently. Many small companies use something near $2,500 per item; there is no required number. Define whether the threshold applies to individual items or groups, and review aggregate purchases that could be material even when each item is small.

Does depreciation start on the invoice date?

Use the date the asset is ready and available for its intended use, then apply the company's in-service month convention. An invoice or payment can precede that date. Document the convention and apply it consistently to comparable assets.

How do I record the sale of a fixed asset?

Calculate depreciation through disposal under the policy. Remove the original cost and its accumulated depreciation, record proceeds, and recognize the difference between proceeds and net book value as a gain or loss. Retain approval and evidence of the proceeds.

Why reconcile cost and accumulated depreciation separately?

A net balance can agree even when both accounts are wrong. A missed disposal can overstate cost and accumulated depreciation by the same amount. Separate ties expose that error and make the asset roll-forward checkable.

Is the book schedule also the tax depreciation schedule?

No. Keep tax depreciation in a separate schedule. Book and tax methods, lives, and timing can differ. This guide covers the monthly book close and does not provide tax advice.

Guide

Fixed asset depreciation schedule for the month-end close

By the Vanward team · Last updated October 23, 2026

A fixed asset depreciation schedule lists the assets a company capitalizes, calculates the cost assigned to each month, and reconciles their remaining book value to the general ledger. Start with the prior month register, add qualifying purchases when they are ready for use, calculate depreciation under a consistent policy, and remove disposals. Tie gross cost and accumulated depreciation to separate ledger accounts before signing off. For example, equipment costing $12,000 with no residual value and a five-year useful life has straight-line depreciation of $200 a month. Keep invoice support, in-service dates, and a roll-forward so a reviewer can trace both the monthly expense and the ending balance.

Set the capitalization policy before adding assets

Capitalize qualifying costs that provide benefits beyond the current period and meet the company's book capitalization policy. Define a threshold, the unit of account, and which costs make an asset ready for use. For example, a fictional company, Juniper Deskworks, capitalizes qualifying equipment costing at least $2,500 per item. Routine repairs remain expenses. A major improvement needs a separate assessment under the policy.

Search both fixed asset and expense postings for additions. Looking only at the asset account misses a machine coded to repairs. Looking only at invoices misses a purchase made on a company card. Keep construction or installation costs separate until the asset is ready for use, and do not depreciate land.

Keep a register with asset classes and useful lives

Give every asset a stable identifier and retain its invoice, cost, class, location, in-service date, useful life, residual value, and method. Useful life estimates describe expected use in the business. The lives below are examples of a book policy, not tax lives.

Class	Illustrative useful life	What to check
Computers	3 years	Expected replacement cycle and residual value
Equipment	5 years	Usage, maintenance, and expected obsolescence
Office furniture	7 years	Expected service period and condition

Carry forward accumulated depreciation by asset. Keep assets with zero net book value on the register until disposal. Otherwise a physical inventory can find equipment that finance has lost track of simply because its depreciation ended.

Straight-line depreciation and the in-service month

Monthly straight-line depreciation equals cost less estimated residual value, divided by useful life in months. Juniper Deskworks puts $12,000 of equipment into service on October 19. Its residual value is zero and its useful life is 60 months, so a full month is $200. The first month depends on the documented convention.

Convention	October expense	November expense	Treatment
Full month	$200	$200	A full month in the month placed in service
Half month	$100	$200	Half a month in the month placed in service
Next month	$0	$200	Start in the following month

Select a convention that reasonably reflects use under the company's reporting policy, and apply it consistently. Do not switch conventions to manage a month's expense. The total depreciation cannot exceed $12,000 in this example. A half-month start leaves a final $100 charge; a next-month start shifts the finish one month later.

Under the full-month convention, October's entry debits depreciation expense $200 and credits accumulated depreciation, equipment, $200. The original cost stays at $12,000. Review changed estimates or impairment indicators separately rather than quietly changing the spreadsheet to force a desired balance.

Disposals and gain or loss

Bring depreciation through the disposal date under the policy first. Suppose another asset cost $12,000 and has $9,000 of accumulated depreciation when it sells for $2,500, with no selling costs. Its net book value is $3,000 and the loss is $500.

Disposal entry	Debit	Credit
Cash	$2,500
Accumulated depreciation	$9,000
Loss on disposal	$500
Equipment cost		$12,000

Proceeds above net book value produce a gain instead. For a scrapped asset with no proceeds, the remaining book value is a loss. Keep disposal approval and the sale or scrap evidence with the asset record so the removal can be traced.

Tie the ledger and prepare the auditor's roll-forward

Reconcile gross cost and accumulated depreciation by asset class and ledger account after posting the month's entries. Tie the depreciation expense total too. Use positive amounts for accumulated depreciation in the schedule and label the ledger credit balance clearly. A monthly roll-forward might look like this:

Movement	Gross cost	Accumulated depreciation
Beginning balance	$48,000	$18,000
Additions	$12,000	$0
Monthly depreciation	$0	$800
Disposals removed	($12,000)	($9,000)
Ending balance	$48,000	$9,800

Ending net book value is $38,200. The $800 includes all depreciation for the month, including any final charge on the disposed asset. An auditor typically asks for beginning balances, additions, disposals, depreciation, and ending balances, with asset detail and supporting invoices. Show transfers or other adjustments separately. Investigate a difference instead of burying it in additions.

Keep book and tax separate

Keep tax depreciation on its own schedule. An accelerated deduction on the tax return does not change the book entry, and book lives should not be changed to match tax lives.

What this looks like in Vanward

Start from the asset list you already keep. Vanward pulls the month's new postings from QuickBooks so you can decide which ones are assets, works the depreciation and the journal entry under your conventions, and ties cost and accumulated depreciation to their ledger accounts separately.

Sign-off locks the month. The lead sheet goes to the auditor with three tabs: the lead, the asset detail and the roll-forward. If you would rather sort additions as they post than at month end, turn that on for the schedule.

Questions controllers ask

What belongs in a fixed asset register?: Include an asset identifier, description, class, location or owner, invoice reference, cost, acquisition date, in-service date, useful life, residual value, depreciation method, accumulated depreciation, and disposal details. Keep fully depreciated assets on the register while they remain in use.
What capitalization threshold should a small company use?: Set a written book policy based on materiality and apply it consistently. Many small companies use something near $2,500 per item; there is no required number. Define whether the threshold applies to individual items or groups, and review aggregate purchases that could be material even when each item is small.
Does depreciation start on the invoice date?: Use the date the asset is ready and available for its intended use, then apply the company's in-service month convention. An invoice or payment can precede that date. Document the convention and apply it consistently to comparable assets.
How do I record the sale of a fixed asset?: Calculate depreciation through disposal under the policy. Remove the original cost and its accumulated depreciation, record proceeds, and recognize the difference between proceeds and net book value as a gain or loss. Retain approval and evidence of the proceeds.
Why reconcile cost and accumulated depreciation separately?: A net balance can agree even when both accounts are wrong. A missed disposal can overstate cost and accumulated depreciation by the same amount. Separate ties expose that error and make the asset roll-forward checkable.
Is the book schedule also the tax depreciation schedule?: No. Keep tax depreciation in a separate schedule. Book and tax methods, lives, and timing can differ. This guide covers the monthly book close and does not provide tax advice.

How ready is your close?

Eight yes-or-no questions, two minutes, no account. You get a score out of 100 and the three gaps most likely to come up in an audit or a diligence request.

Take the free close check