What is one of the first steps you would take after deciding to track fixed assets using Xero?

Setting up the start date for fixed assets is a crucial initial step when deciding to track fixed assets using Xero. This start date establishes the point in time from which the assets will be tracked and depreciated. It serves as a reference for calculating depreciation and ensures that the financial records reflect accurate asset values from that date onward.

Having a defined start date allows you to align your asset tracking with your accounting periods and ensures that subsequent depreciation calculations are grounded in a specific timeframe. It helps in the accurate recording of asset acquisitions, valuations, and their subsequent financial impact.

While other activities such as creating depreciation schedules, compiling supplier invoices, and estimating the market value of assets are also important parts of managing fixed assets, they come after having a clearly defined start date. This foundational step is essential for maintaining accurate financial records and tracking the assets effectively throughout their lifecycle.