Anyone managing fixed assets such as machinery, vehicles or IT equipment knows the challenge: every asset has its own acquisition date, its own acquisition cost and its own useful life. If depreciation is carried forward by hand in an Excel sheet year after year, errors creep in sooner or later – a wrong book value, an overlooked asset or a depreciation charge that ends up in the wrong financial year. The digital fixed asset register in 1Tool simplifies this process considerably: acquisition cost, acquisition date and depreciation method are entered once per asset – the system takes care of the rest automatically.
Which depreciation method suits which asset?
In the 1Tool asset register, four options are available for each asset:
- Straight-line: The acquisition cost is spread evenly over the useful life – the classic and most commonly used method for most fixed assets.
- Declining balance: Depreciation is higher in the first years and decreases afterwards, as it is based on the remaining book value.
- Low-value assets (GWG): For purchases below a certain value threshold, Austrian tax law allows an immediate write-off in the year of acquisition.
- Manual: For special cases where an individual depreciation pattern is to be stored.
Which method is permissible or makes the most sense for tax purposes in a specific case depends on the type of asset and the applicable regulations. This assessment should always be made together with your tax advisor – 1Tool maps the chosen method and does the calculation, but does not replace tax advice.
From depreciation schedule straight into accounting
As soon as an asset has been created with its acquisition cost, acquisition date and depreciation method, 1Tool automatically generates a complete depreciation schedule over the entire useful life. For each year, the book value at the start of the year, the book value at the end of the year and the planned depreciation amount are visible at a glance – without maintaining a single formula yourself. At the end of a financial year, a single action is all it takes: “Post depreciation for the year” transfers the scheduled depreciation amount directly into accounting. This reduces not only manual effort but also the risk of forgetting a depreciation charge or posting it twice.
An overview just as your tax advisor expects it
For working with your tax advisory firm, 1Tool provides a general ledger account overview that summarises asset values per account – exactly in the form usually required for fixed asset accounting. In addition, numerically correct sorting by inventory number ensures that assets appear in the right order even in larger registers (inventory number 2 before 10, not after it) – a small detail, but one you notice in everyday work.
Frequently asked questions
What does GWG mean and when can I use this method?
GWG stands for low-value assets (geringwertige Wirtschaftsgüter) and, in Austria, allows an immediate write-off in the year of acquisition under certain conditions. Whether a specific asset meets the requirements is best clarified with your tax advisor – in 1Tool, you then simply select the method in the asset register.
Is depreciation transferred to accounting automatically?
The calculation is done automatically via the generated depreciation schedule. You trigger the actual posting deliberately with the “Post depreciation for the year” action, so you stay in control of when a financial year's depreciation flows into accounting.
Can I use different depreciation methods for different assets?
Yes. The depreciation method – straight-line, declining balance, low-value asset or manual – is set individually for each asset in the fixed asset register.
Would you like to keep your fixed asset register without Excel and without manual depreciation schedules?