In 2010, Fin24
said government was run like 'spaza shop'.
Government had no functional asset register at the time.
This meant it couldn't control its capital assets properly.
That's why Public Works Minister Thulas Nxesi says government's immovable assets register, which is expected to be "substantially" completed by March 2015, will be a real game changer, Fin24
"With a sustainable register of state immovable assets in place, we will have at our disposal the tools to leverage this massive property portfolio for economic development," explains Nxesi.
Not sure what an asset register is?
Simply put, it includes your company's records of all the fixed assets it owns.
This doesn't just mean property, but also equipment, motor vehicles and machinery.
And it's not just a list of the assets either.
Here's what you need to include in your fixed asset register…
You'll also need to include information like the fixed asset number, a description of the asset, its cost price, the purchase date and balances per class of asset, explains Henk Heymans, Editor-In-Chief of the Practical Accountancy Loose Leaf
With so much information to include, it's little wonder government estimates its fixed asset register will only be completed in the next two years.
If you don't have one in place yet for your company, best you snap to it immediately!
Two reasons to implement a fixed asset register in your company today!
A fixed asset register is one of the ten accounting records that proves you have sufficient accounting controls in your company if SARS officials show up at your door unannounced to check your accounting records.
You also need an asset register to perform assets and liabilities tests, to check whether you're paying your capital gains tax
over correctly to SARS, says FSP Business
Because if SARS finds you've been underpaying your capital gains tax
, you'll face hefty penalties and interest, so it's a good idea to regularly check that all is in order with your asset register.
Just remember to update your asset register each time you buy or sell any assets in your business – this will remind you to pay over the CGT
There you have it. A fixed asset register will simplify your dealings with SARS and make it easier to state how much your business assets are worth!