Why the fixed asset register is more than an accounting list
In a Swiss SME, machinery, company vehicles, IT equipment, furniture, and capitalized software often represent a significant share of assets. The fixed asset register (asset register) is the document that links each item to its carrying amount, depreciation schedule, and corresponding balance sheet line. Without an up-to-date, verified register, you risk overstating assets, forgetting disposed or stolen items, and being unable to justify tax deductions in an assessment.
The Swiss Code of Obligations (CO) and Swiss accounting rules (in particular Arts. 960–960a CO and, for SMEs applying a recognized standard, often Swiss GAAP FER) require orderly accounting and a true and fair view of the financial position. For tangible and intangible fixed assets this means: correct recognition at purchase or activation, systematic depreciation, impairment when recoverable amount is below net book value, and derecognition on sale or disposal.
Annual physical inventory—combined with unique labeling and structured reconciliation with the balance sheet—turns the register from a static spreadsheet into an internal control tool. This guide describes an operational workflow suited to typical Swiss SME realities, updated to 2026 practices, and integrable with accounting software such as Accountex.
Legal and accounting framework at a glance
Fixed assets are part of non-current assets on the balance sheet. The principles below apply to most SMEs preparing annual accounts under Swiss law:
| Aspect | Reference / practice | Implication for the SME |
|---|---|---|
| True and fair view | Art. 958 and 960 CO; Art. 957a CO | Balance sheet values must reflect existence and usability of assets |
| Recognition criteria | CO Art. 960d; Swiss GAAP FER 18 / FER 10 | Capitalize if useful life > 1 year and material value; internal threshold often CHF 1,000–5,000 |
| Depreciation | CO Art. 960a para. 1–2; FER 18 / FER 10 | Periodic charges on a systematic basis; useful life aligned with economic use |
| Impairment | CO Art. 960a para. 3; FER 20; prudence principle | Adjustment for damage, obsolescence, or persistent underutilization |
| Documentation | Art. 958f CO; Art. 957a CO; good audit practice | Register, purchase evidence, inventory minutes, notes on missing assets |
| Taxation | DBG Art. 28 and cantonal tax laws; FTA guidelines | Depreciation accepted if economically justified and booked; gains/losses on disposal |
The capitalization threshold is not fixed by federal law for every SME: it is an accounting policy decision, applied consistently year after year and disclosed in the notes to the financial statements where relevant.
Minimum content of the fixed asset register
A robust register—often managed in the fixed assets module of accounting software—should let you answer in minutes: “Where is this asset? What is its net value? When was it purchased and from whom?”
Asset master data
- Unique inventory number (label ID)
- Description, make/model, serial number
- Accounting category (furniture, vehicles, IT, intangibles, etc.)
- Location (site, department, assigned employee)
- In-service date and supplier
- Invoice / purchase order reference
Valuation and movement data
- Acquisition cost or capitalized production cost
- Depreciation method and life, annual charge
- Accumulated depreciation and net book value
- Any impairments and rationale
- History: transfers, capitalized repairs, sales, scrapping
- Link to balance sheet account in chart of accounts
Physical labeling: linking the asset to the register
Labeling means affixing on each movable asset (or on the assignment document for sensitive items) an identifier that matches the inventory number in the register. In SMEs with dozens or hundreds of workstations, vehicles, or machines, without labels physical inventory becomes slow and prone to naming confusion (“Dell laptop” is not enough).
Good practices: barcodes or QR codes printed on durable labels (polyester / industrial vinyl for machinery); visible but unobtrusive placement; recording of labeling date. For vehicles, the link can be via license plate number in the register, with visual plate check during inventory. For capitalized software and licenses, the “label” is logical: license key, contract, and assigned workstation.
Recommended internal policy
Define in writing (internal circular or quality procedure): who labels new purchases (administration vs IT vs warehouse), within how many days of going into service, and what to do if a label is removed or illegible. Every new asset above the capitalization threshold should not go into use without an inventory ID.
Annual physical inventory: method and calendar
Physical inventory should be planned near year-end (last quarter or a dedicated week at year-end) so that any adjustments flow into the annual accounts. Involve site managers, department heads, or asset pool owners (e.g. fleet manager).
1. Preparation
Extract from the register the list of active assets by location; temporarily freeze non-urgent movements; communicate the cut-off date for inter-site transfers.
2. Field count
For each item: verify presence, label readability, obvious condition (damage, obsolescence). Mark “found”, “not found”, “different location”, “to dispose”. Use a tablet or a sheet importable into the ERP to reduce double entry.
3. Investigating variances
For missing items: theft (report if material), unrecorded sale, derecognition error, asset in external repair. Document conclusions for each variance line.
4. Minutes and filing
Prepare fixed asset inventory minutes signed by the responsible manager and accounting, with a variance list attached. Retain with year-end files (Art. 958f CO: ten years from end of financial year, unless longer periods under special rules).
Register ↔ balance sheet reconciliation
Reconciliation shows that the sum of net values by category in the register matches balance sheet lines “Tangible fixed assets”, “Intangible fixed assets”, and sub-accounts in the chart of accounts. Typical year-end procedure:
| Step | Action | Output |
|---|---|---|
| A | Register totals by balance sheet account (net value) | Schedule by accounting category |
| B | General ledger balance for fixed asset accounts (debit − accumulated depreciation) | Account statement for each fixed asset account |
| C | Compare A vs B; analyze differences | Notes on missing entries, timing, classification errors |
| D | Inventory adjustments (derecognition, impairments, location) | Documented closing entries |
| E | Post-adjustment reconciliation and sign-off | Attachment to closing / audit package |
If you use Accountex or an integrated accounting ERP, the fixed assets module should automatically generate depreciation entries and disposal movements; reconciliation is still needed to capture events not reflected in the register (never-capitalized assets, duplicates, assets removed without accounting derecognition).
Typical entries after inventory
Asset not found
Write off net book value to a loss on assets account (or similar). If insured, separate any indemnity. For material amounts, assess impact on corporate income tax (federal and cantonal) and communication to the auditor.
Obsolescence adjustment
Partial or full impairment if recoverable amount (continued use or sale price) is below net book value. Document rationale in the minutes (machinery replaced by new line, unsupported software).
Asset found not in register
Retro-capitalization if criteria are met and purchase documentation exists; adjust depreciation if needed. Without evidence, more sensitive treatment—consult your trustee or advisor.
Sale or scrapping
Remove from register, reverse accumulated depreciation, record proceeds or disposal cost; gain or loss on disposal in the income statement. Keep sales contract or vehicle demolition certificate.
Common SME mistakes and how to avoid them
- Mixing current costs / fixed assets:Maintenance and small parts go to expense; only improvements that extend useful life or capacity should be capitalized.
- Inconsistent depreciation:Life and method should remain stable unless a change is justified; aligning tax and accounting policy avoids FTA adjustments.
- Paper-only inventory:Counting from the register alone without physical verification does not meet internal control expected on audit (ordinary or limited) or by the trustee.
- IT and subscriptions:Confusing SaaS (periodic expense) with capitalized perpetual licenses inflates assets.
- Mixed private/business vehicles:Document assignment and mileage; the asset must be traceable in the register and inventory.
Year-end checklist for the accounting manager
- Capitalization policy and depreciation plan approved and applied uniformly.
- All new purchases in the period recorded with inventory ID and physical label where applicable.
- Physical inventory completed, minutes signed, variances investigated.
- Derecognitions and impairments posted with supporting documentation.
- Register–ledger–balance sheet reconciliation with no unexplained differences.
- Depreciation charge for the period booked (automatic or manual).
- Documents retained: invoices, minutes, photos of damaged assets if relevant for insurance or audit.
A well-maintained fixed asset register simplifies closing, strengthens balance sheet credibility with banks and investors, and reduces time spent by the trustee or auditor reconstructing asset history. By integrating inventory, labeling, and reconciliation in one annual cycle, the SME aligns operational control with Swiss accounting obligations sustainably.