what are the key benefits
Clear benefits that can drive improvements in your working practices
It an be hard to see the forest for the trees, but nettTracker brings some clear and demonstrable benefits. Let’s take a look at some working comparison between using spreadsheets and nettTracker.
Spreadsheet-based working
Locate and open the fixed asset register spreadsheet
Edit the fixed asset register to ‘roll forward’ values from the prior year. All accumulated (brought forward values) should agree to the last set of annual accounts prepared. So, lots of copy, paste and checking everything is correct.
Ensure the bookkeeping software correctly splits the values between ‘in-year’ movements and ‘accumulated balances’ if appropriate (prior year movements may need to be adjusted to accumulated balances)
Open the bookkeeping software in use (QuickBooks Online / Sage / Xero), and review any purchases that have been coded to fixed asset categories
Return to spreadsheet and manually add the new assets to the asset register, ensuring dates, details and values are correct
Review other accounting categories in bookkeeping software, detect asset purchases, and manually add to the excel asset register
Check all formulas in place in the spreadsheet to calculate depreciation are correct
Make note of the values required to create a journal to account for the depreciation
Return into bookkeeping software and enter the journal
Email the asset register to the client to request confirmation all assets in place
Receive email advising that some assets have been scrapped or disposed
Adjust spreadsheet to account of any disposals made during the year
Create journal entries to account for the disposals and the changes to depreciation
Check that the total net book value of assets on the fixed asset register agrees to the total value of assets shown on the balance sheet within accounting software
After initial steps followed by a junior team member, a manager or partner may then be required to undertake a final review of the fixed asset register
TIME SPENT: >90 mins
Integrating nettTracker
Log-in to nettTracker and open asset register (all prior year figures roll forward in year-end routine)
Review asset register (additions and depreciations will have been accounted for and journal entries auto posted). Clients can be added as users so that they can review their own asset register
Fully adjust for disposals and other adjustments in couple of clicks – all journals auto posted
Once satisfied the asset register is up to date, run the year-end routine and all necessary journal entries
Time Spent: <15 mins
But we have over 200 clients! How will that work for us?
Take a medium sized accounting firm handling 200 asset registers. 90 minutes spent on each asset register at a prudent cost of £35 per hour (employee cost and overheads), equates to £10,500 per annum attributable to fixed asset effort. Introduce future quarterly making tax digital requirements over the coming years, the annual cost to review 200 asset registers every year could exceed £40,000.
Using nettTracker, 200 asset registers will cost £2730pa, saving the business well over £5k a year in direct costs. It also opens opportunities to re-task resources on more profitable activities and opens a potential revenue stream as nettTracker costs can be passed directly to your client!
The above relates to the maintenance of the fixed asset register alone. Using nettTracker to look after the fixed assets, along with adjustments for prepayments and accruals, the time savings could easily double.
Ready to reduce your month-end stress?
Let nettTracker handle your recurring adjustments, so you can focus on higher-value work