Oh Where, Oh Where Did My Assets Go?

By John Charette, CPA, CMA – Owner & Your CFO at Phoenix CFO Solutions

Most business owners don’t lose track of fixed assets because they’re careless. They lose track because no one ever set up a real system to manage them in the first place.

Equipment gets purchased. Software licenses pile up. Furniture, vehicles, tools, and technology slowly accumulate as the business grows. Then a year goes by, depreciation feels like a guess, assets on the balance sheet don’t match what’s actually in use, and no one is quite sure what’s still valuable versus what should’ve been written off already.

Fixed assets matter more than most owners realize. They affect your depreciation, your profit, your balance sheet, and your operational decisions. In this post, you’ll learn how to maintain a clear, usable fixed asset record so your accounting stays accurate and your operations stay aligned.

Build a Fixed Asset Rollforward You Can Actually Maintain

The foundation of asset tracking is a rollforward.

A rollforward is simply a record that shows where your fixed assets started, what was added, what was disposed of, how much depreciation was recorded, and where the balance ends. Without this, assets drift. Numbers stop tying out. And depreciation turns into guesswork.

This matters because fixed assets don’t reset each month. They roll forward year after year. Without a reliable source of truth, it becomes impossible to track balances consistently or explain changes when questions come up.

There are a few ways to build this. Some accounting systems, like QuickBooks, include built-in fixed asset tools that can automate depreciation entries once assets are set up correctly. These are helpful for simpler environments. There are also third-party tools that sync with your accounting system and provide a more user-friendly interface for non-accounting teams. They typically cost more but can deliver strong reporting and visibility.

And then there’s the spreadsheet option. A well-built spreadsheet is flexible and cost-effective, but it must be controlled. Only one version should exist. Access should be limited. Every addition, depreciation entry, disposal, and impairment must be handled manually and consistently. Spreadsheets work well until they don’t, and repairing a broken one is never quick.

Understand the Entries So the Numbers Actually Tie Out

Tracking assets isn’t just about listing what you own. It’s about understanding how those assets flow through your financials.

Every fixed asset will eventually touch four main areas: additions, depreciation, disposals, and impairments. These entries directly affect your income statement and balance sheet, which means mistakes here distort both performance and financial position.

Depreciation spreads the cost of an asset over its useful life to reflect wear and tear. Additions increase your balance sheet when new assets are acquired. Disposals remove assets that are sold or scrapped, often triggering gains or losses. Impairments write down assets that have lost value beyond normal depreciation.

Because there’s no external statement to reconcile fixed assets against, your internal records must be clean. If balances don’t tie out after posting entries, that’s a signal something is wrong and needs to be investigated immediately. Sloppy asset records compound over time and are painful to unwind later.

Good asset tracking also helps operational decision-making. Assets nearing the end of their useful life often cost more to maintain. Knowing when to repair, dispose of, or reinvest in newer assets becomes clearer when the data is organized and current.

Align Accounting and Operations So Assets Don’t Go Missing

Fixed assets sit at the intersection of accounting and operations, which is exactly why they cause problems.

Operations teams buy and use assets. Accounting tracks and depreciates them. If those two sides aren’t talking, assets slip through the cracks. Additions don’t get recorded. Disposals don’t get removed. Depreciation schedules fall out of sync with reality.

In small businesses, operations often take priority, and accounting plays catch-up. That’s understandable, but as investment in assets grows, the cost of misalignment grows with it.

Accounting needs to know what’s being purchased, when assets are being retired, and which equipment is nearing the end of its useful life. Operations benefit from knowing how much capital is tied up in assets, how efficiently they’re being used, and when replacements are likely needed.

This alignment also supports performance metrics like return on assets and fixed asset turnover ratios. Without accurate asset data, those metrics are meaningless. With it, they become powerful tools for evaluating how well the business is using what it owns.

Why Fixed Asset Discipline Becomes Non-Negotiable as You Grow

In early stages, asset tracking feels optional. There aren’t many assets, and balances don’t seem material. But growth changes that quickly.

As asset counts rise, so does complexity. Manual work increases. Errors compound. And suddenly depreciation swings, unexplained balance sheet changes, and inconsistent KPIs start showing up in reports.

At that point, asset tracking stops being an accounting task and becomes a management issue. Decisions around reinvestment, maintenance, financing, and scaling depend on knowing what you own and how well it’s performing.

This is where Phoenix CFO Solutions helps businesses put structure around fixed assets. We build rollforwards that tie out, oversee depreciation and disposals, and align accounting with operations so asset data stays accurate as the business grows.

The Bottom Line: Assets Should Never Be a Mystery

When fixed assets are tracked properly, everything gets easier. Depreciation is accurate. Reports make sense. KPIs become reliable. And accounting and operations stop working against each other.

Without a system, assets slowly disappear from view. Numbers drift. Decisions get harder. And confidence in the financials erodes.

You shouldn’t be guessing where your assets went or what they’re worth.

You should’ve had a fixed asset tracking process yesterday.
The next best time is today.

Book a free consultation with Phoenix CFO Solutions, and let’s make sure your investments in the business are tracked, supported, and actually working for you.