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Fixed assets and deferrals

Bought a 2,000 € laptop? Depreciation runs itself

Long-lived purchases and services paid in advance should not hit a single month. FreeMe spreads them across months and posts them automatically, while your accountant keeps an eye on the schedule.

Start in FreeMe How it works
  • Schedule by month
  • Posted automatically each month
  • Accountant keeps the schedule

Short demo: you upload an invoice for a 2,000 euro laptop and FreeMe suggests adding it to the fixed-asset register. A depreciation schedule with equal monthly amounts appears. Second scene: a 1,200 euro yearly subscription is spread over 12 months at 100 euro each. Each month the entries are posted automatically in the journal, and the report shows even monthly costs instead of a spike. Figures are sample data.

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Depreciation without Excel

Laptop, machine, car: the value is spread across months.

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Subscriptions by month

Paid a year ahead? The cost is recognized month by month.

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Profit without spikes

One big purchase does not distort the month you pay it.

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Posted automatically

Each month the entries run by themselves, no reminders.

Typical situations

When you need fixed assets and deferrals

Two purchases that would hit one month but work for years.

I bought a 2,000 € laptop. How is it booked?Registered as an asset and depreciated month by month.
I paid a yearly subscription upfront.The cost is spread over the months of use.
Why does March profit look weak?Often one big purchase. Spread out, it stops distorting the month.
How much is left to depreciate?The schedule shows the monthly amounts and the accumulated total.
I prepaid a year of rent or insurance.Same deferral: equal parts across the period.
I sold or scrapped the asset.Sale and write-off events are recorded on its card.
How it works

From the invoice to the monthly schedule

You upload the document. The rest happens in the system, and your accountant keeps an eye on it.

Upload the invoice

Photo, file or email. FreeMe reads the Laptop line and its amount.

Get a suggestion

A line may look like an asset (Add as fixed asset) or carry a service period (Will be deferred).

The schedule appears

For an asset: a Depreciation schedule by month. For a service: monthly parts through Deferrals. The last month absorbs the remainder to the cent.

Months post themselves

The system posts each month and records it in the Journal. The effect shows in the Accounting reports.

Straight-line depreciation is calculated automatically. Other methods can be recorded but are not calculated for you.

Who does what

You see the effect, your accountant keeps the register

This is accounting work, so the FreeMe team keeps it in the same system where you read your reports.

You upload and decide

You upload documents and see the suggestions while processing. Access to the screens depends on your role in the company.

Your accountant keeps the register

Creating assets, events like sale or write-off, plan corrections and deferrals are done by a FreeMe accountant.

Doubtful lines are flagged

If the service period is unclear, the line is booked as an expense and flagged for an accountant to review.

It stops when something is off

With a locked period, a missing account or an unusual amount, automatic posting stops and an accountant is alerted.

See how the month is closed

Before and now

One big cost versus even months

Same money, but monthly reports show the real picture.

Without spreading

Everything in one month

  • The purchase month shows a loss
  • Later months look better than reality
  • Hard to compare month to month
With FreeMe

Equal monthly parts

  • The laptop depreciates over its life
  • The subscription is recognized over the months of use
  • Reports compare fairly
See the reports
Questions

Frequently asked questions

What are fixed assets and depreciation?
A fixed asset is a long-lived tangible item you use for more than a year, such as a computer, machine or car. Instead of a one-off cost, its value is spread across months over its life. That spreading is depreciation. The value from which something counts as an asset is set by law and the company's accounting policy. Your accountant confirms the decision.
Do I decide on my own whether something is an asset?
FreeMe suggests while a document is processed and shows its reasons: line description, price per unit, earlier decisions. You can pick Add as fixed asset or Book as expense. The register and schedules are kept by a FreeMe accountant.
Which depreciation methods are there?
Straight-line depreciation is calculated automatically: equal monthly parts. Other methods (declining balance, units of production) can be recorded but are not calculated automatically.
Are there assets that do not depreciate?
Yes. An asset can be marked as non-depreciating, for example land. No depreciation schedule is kept for it.
When is an expense deferred?
When the service continues after the month of posting, for example a yearly subscription. Very small amounts and periods ending in the same month are booked straight away as an expense. The threshold is a company setting.
Does deferral work for income too?
Yes. There are separate lists for deferred expenses and deferred income: for example, a prepaid service you sell is recognized month by month.
What if the period is unclear?
The period is looked for in the document, in dates and text, and in the supplier's history. If it is not certain enough, the line is booked as an expense and flagged for an accountant to review.

See the effect in reports and at month close

Depreciation and deferred expenses flow into the income statement and the monthly close.

Accounting reports Month close

Don't let purchases distort your profit

Upload an invoice and watch it spread across months.