Exciting Updates to FreeAgent's Capital Asset and Depreciation Functionality image

Exciting Updates to FreeAgent's Capital Asset and Depreciation Functionality

FreeAgent introduces flexible asset depreciation options, including new methods and increased frequency, enhancing users' accounting capabilities.

Posted byFreeAgent
onWednesday, 6 March 2024

FreeAgent announces significant enhancements to its capital asset and depreciation features, providing users with unprecedented flexibility in their accounting processes. The updates include:

  1. Expanded Depreciation Methods: Users now have the option to choose from a range of depreciation methods, including the reducing balance method. Additionally, assets such as land and investments, which do not depreciate, are fully supported.

  2. Increased Frequency Options: Users can now select the frequency at which ledger entries for depreciation are posted, whether monthly or annually.

  3. Extended Asset Lifetimes: Under the straight-line method, assets can now have lifetimes of up to 25 years, enabling more accurate long-term planning.

  4. Enhanced Reporting: The Capital Asset report has been revamped to offer a more detailed breakdown, including asset type, depreciation method, and purchase price.

Furthermore, upcoming features will include default nominal codes for land and property assets in new FreeAgent accounts, the ability to set a default depreciation method for all new capital asset types, and a 'Net Book Value' running balance for individual assets.

These updates aim to streamline data entry and cater to clients with sophisticated accounting needs. By allowing more accurate and frequent ledger entries, users can expect a more realistic reflection of their accounts at year-end, while the Capital Asset report will provide better insights into asset depreciation.

Previously, FreeAgent only allowed depreciation using the straight-line method for a maximum of seven years, necessitating regular journal entries. Now, users have flexibility in asset depreciation methods and frequencies, accessible both on the web platform and via the mobile app.

These improvements empower users to customise their accounting processes to suit their specific requirements, ultimately saving time and providing more accurate financial reporting.

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