Updating the fixed asset register after a year-end change in Xero can be a daunting task, especially when dealing with a large number of assets. Manually changing each individual asset can be time-consuming and prone to errors.
In this post, we will guide you through the process of bulk changing the fixed asset register in Xero, making it a hassle-free and efficient task. By following the step-by-step instructions provided, you can ensure that your fixed asset register accurately reflects the new financial year-end date in Xero. As Accountants in Leeds & Ilkley, we help accounting teams and businesses improve how they work with Xero. If you need more help, please get in touch.
Is this relevant for you?
This is valuable for individuals or businesses using Xero as their accounting software and have recently changed their year-end date. If you are responsible for managing the fixed asset register in Xero or involved in the financial reporting process, this guide is essential for you. Whether you are an accountant, bookkeeper, or business owner, understanding how to update the fixed asset register in Xero will help you streamline your financial management processes and maintain accurate records.
If you change the year end in xero you will see that the fixed assets will need to be reset. Changing each individual asset would be cumbersome so follow these handy steps to bulk change the register:
1. Run and publish the following reports :-
Depreciation Schedule
Run the depreciation schedule to see the fixed assets, movements and depreciation values for each financial year end (and each month end if you need monthly figures) since you started using fixed assets in Xero; and the day before the new fixed assets start date. For example, if your new fixed assets start date is 1 January 2015, run this report as at 31 December 2014.
- In the Accounting menu, select Reports.
- Under Fixed Assets, click … to expand the section if the report is hidden.
- Click Depreciation Schedule (New).
- Select a date range, then click Update to view your report.
Fixed asset reconciliation report
Run the Fixed Asset Reconciliation report to compare your Balance Sheet fixed asset account balances with your Asset Register balances for each financial year end (and each month end if you need monthly figures) since you started using fixed assets in Xero; and the day before the new fixed assets start date. For example, if your new fixed assets start date is 1 January 2015, run this report as at 31 December 2014.
- In the Accounting menu, select Reports.
- Under Fixed Assets, click Fixed Asset Reconciliation (New).
- Select a date range then click Update to view your report.
Disposal schedule
Run the Disposal Schedule to see the details of any fixed assets that were sold or disposed of during the selected period.
- In the Accounting menu, select Reports.
- Under Fixed Assets, click … to expand the section if the report is hidden.
- Click Disposal Schedule.
- Select a date range, then click Update to view your report.
2. Change the date
Change the fixed assets start date to the first day of the new financial year. For example, if you’re changing the financial year end from 30 June to 31 December, and the last finalised annual accounts were for the year ended 30 June 2015, change the fixed assets start date to 1 January 2015.
- In the Accounting menu, select Advanced, then click Fixed assets.
- Click Settings, then click Change Start Date.
- Select the new start date.
- Click Save.
3. Export the fixed assets
Export the fixed asset register to a csv file, this will include the entire fixed asset register, including disposed assets, even if you limit the search criteria.
The assets are grouped by status (Disposed, Draft, Registered), then ordered alphanumerically. The data in the exported file is current as at the export date.
To export the fixed asset register:
- In the Accounting menu, select Advanced, then click Fixed assets.
- Click Export.
- Open the exported file and make the following changes:
- Delete the rows containing assets disposed before the new fixed assets start date.
- In the Book_OpeningBookAccumulatedDepreciation column, delete the exported values and enter the accumulated depreciation values from your Depreciation Schedule report as at the day before the new fixed assets start date.
- Save the file in CSV format.
4. Import the amended file back into Xero to update the draft fixed assets.
5. Register the Assets as normal.
6. Account for movement in fixed asset accounts
Post manual journals to account for movements in the fixed asset accounts in the previous years you used fixed assets. Use the report you ran in Step 1.
You may need to create journals for these movements in fixed assets:
- Depreciation on assets since purchase date or registration date in Xero
- Gain or loss on disposal of disposed assets.
Once you’ve updated the fixed asset start date, you may need to go through and run depreciation on the assets again.
Updating the fixed asset register after a year-end change in Xero is a necessary task to ensure accurate financial reporting and compliance. By following these steps, you can efficiently bulk change the register and maintain an up-to-date record of your fixed assets. Remember to run the necessary reports, change the start date, and export the register to a CSV file for reference. By managing your fixed asset register effectively, you can streamline your financial processes and make informed business decisions based on accurate and reliable information in Xero.
For expert guidance and support with your fixed asset register and other accounting needs, contact Ascentis today and experience the difference in financial management!