Equipment Checkout Form: Free Template for Tracking Company Equipment
Quick Answer
An equipment checkout form records who has a piece of company equipment, what condition it was in, when it was issued and when it's due back. Use a daily sign-out log for shared tools and a long-term assignment agreement for items like laptops and phones. Include item details, serial or asset numbers, condition at checkout and return, and signatures. Collect equipment during offboarding. Be careful with deductions for lost or damaged items: under federal rules, an employer may not require an employee to pay for a business expense if it reduces pay below minimum wage or cuts into overtime.
Laptops, phones, drills, ladders, tablets, keys and company vehicles add up fast. In a small business, equipment often moves between people with nothing more than "grab it from the shop." Then a tool goes missing, a laptop isn't returned when someone leaves or nobody knows who last used the pressure washer.
An equipment checkout form fixes that with a simple record of who has what. This guide includes two free templates (a daily sign-out log and a long-term assignment agreement), explains what to include, how to handle returns and offboarding, what to do about lost or damaged equipment and what federal law says about deductions.
Note: This is general information, not legal advice. State laws on deductions from pay and final paychecks vary and are often stricter than federal law. Check your state's rules.
Two Types of Equipment Checkout
| Type | Best for | Examples |
|---|---|---|
| Daily sign-out log | Shared items used for a shift or a job | Power tools, ladders, testers, tablets, vehicles, keys |
| Long-term assignment agreement | Items assigned to one person for months or years | Laptops, phones, uniforms, personal tool kits, badges |
What to Include
| Field | Why it matters |
|---|---|
| Item description | Know exactly what was issued |
| Asset tag or serial number | Tell identical items apart |
| Condition at checkout | Avoid disputes about prior damage |
| Accessories | Chargers, cases, batteries, attachments |
| Employee name | Who is responsible |
| Checkout date and time | When it left |
| Due date | When it should be back |
| Return date and condition | Close the loop |
| Signatures | Employee and issuer |
Free Daily Equipment Sign-Out Log
| Date | Item and asset # | Employee | Time out | Condition out | Time in | Condition in | Initials |
|---|---|---|---|---|---|---|---|
Print the log on a clipboard by the tool cage or shop door, or keep it in a shared spreadsheet or app. Add a column for job number if you want to connect equipment use to jobs.
Free Long-Term Equipment Assignment Agreement
Equipment Assignment Agreement
Employee: __________ | Role: __________ | Date issued: ______
Equipment issued
Item: __________ | Make/model: __________ | Serial/asset #: __________
Accessories: __________
Condition at issue: ☐ New ☐ Good ☐ Fair Notes: __________
Employee responsibilities
• Use the equipment for company business [and limited personal use as allowed by policy].
• Take reasonable care to protect it from loss, theft and damage.
• Report loss, theft or damage to [contact] right away.
• Don't lend the equipment to others or install unapproved software.
• Return all equipment and accessories when requested or when employment ends.
Return
Date returned: ______ | Condition: __________ | Received by: __________
Employee signature: __________ | Issued by: __________
Have an employment attorney review any language about responsibility for loss or damage, since deductions from pay are restricted.
Setting Up an Equipment Checkout System
- List your equipment. Start with items that are expensive, easy to lose or shared.
- Tag each item with an asset number or label.
- Record serial numbers and purchase dates.
- Choose a checkout method: clipboard log, spreadsheet or app.
- Assign an owner who checks the log and follows up on late returns.
- Train employees on how to check out and return items.
- Review weekly for items still out.
See how to track IT assets for small business for laptops and technology.
Checking Condition
Most disputes about damaged equipment come down to "it was already like that." Recording condition at checkout and return prevents that:
- Use simple ratings: new, good, fair, needs repair.
- Note existing scratches, dents or missing parts.
- Take a quick photo of expensive items at checkout.
- Test equipment at return when practical.
- Pull damaged items from service and tag them.
Returns and Offboarding
Collecting equipment when someone leaves is one of the most common gaps. Build it into your offboarding:
- Pull the list of everything assigned to the employee.
- Schedule the return before or on the last day.
- Check items against the list and record condition.
- Collect keys, badges and access cards.
- Reset or wipe devices and change passwords and codes.
- Sign off the return on the agreement.
Don't hold an employee's final paycheck hostage to get equipment back. Final pay timing is set by state law. See final paycheck laws by state.
Lost or Damaged Equipment and Pay Deductions
It's natural to want employees to pay for equipment they lose or damage, but the law limits this. A Department of Labor Wage and Hour opinion letter explains that an employer may not lawfully require an employee to pay for an expense of the employer's business if doing so reduces the employee's pay below any statutorily required minimum wage or overtime premium that is due, and that wages must be paid "free and clear."
- Hourly employees: under federal law, a deduction can't bring pay below minimum wage for the week or cut into overtime.
- State law: many states restrict deductions further or require specific written authorization.
- Exempt employees: deductions from salary for loss or damage can create problems with the salary basis for the exemption.
Many businesses instead focus on prevention, clear responsibility, insurance for expensive items and discipline for repeated carelessness under a written policy. See is it legal to dock an employee's pay for a mistake.
Equipment Checkout Policy Template
Equipment Checkout Policy
Purpose: To keep company equipment safe, available and accounted for.
Shared equipment: Sign out shared tools, devices and vehicles on the daily log, with condition noted, and sign them back in at the end of the shift or job.
Assigned equipment: Employees sign an assignment agreement for equipment issued to them long-term.
Care: Use equipment as trained, store it securely and report damage, loss or theft right away.
Damaged equipment: Tag and remove damaged equipment from service. Don't use equipment that seems unsafe.
Returns: Return all equipment when requested and before your last day of employment.
Pay: Any deductions for equipment will follow federal and state law.
Equipment Categories to Track
| Category | Examples | Tracking tip |
|---|---|---|
| Technology | Laptops, phones, tablets, hotspots | Track serial numbers; wipe at return |
| Power tools | Drills, saws, sanders, nail guns | Daily sign-out; check batteries |
| Safety equipment | Harnesses, testers, respirators | Inspect before each use |
| Vehicles | Trucks, vans, trailers | Pair with a vehicle inspection |
| Keys and access | Building keys, fobs, codes | Log each key; collect at offboarding |
| Uniforms | Shirts, jackets, boots | Record sizes and quantities |
For vehicles, see the vehicle inspection checklist.
Example: A Small Electrical Contractor
A contractor kept losing expensive testers and cordless drills. The owner tagged every tool, set up a sign-out clipboard at the shop door and asked crew leads to check the log each evening. Tools still out after the job ended triggered a text the next morning. Within two months, tool losses dropped, and the owner had a clear picture of which tools were used most, which helped with buying decisions.
Common Mistakes
- No asset tags, so identical items get mixed up.
- No condition notes at checkout.
- Logs nobody reviews.
- Forgetting equipment in offboarding.
- Deducting losses from pay without checking the law.
- Holding final pay until equipment is returned.
- Not changing codes after keys or fobs go missing.
Equipment Checkout Checklist
| Step | Done? |
|---|---|
| List and tag equipment | |
| Choose daily log vs. assignment agreement for each item | |
| Record condition at checkout and return | |
| Assign an owner to review the log | |
| Add equipment returns to offboarding | |
| Write an equipment checkout policy | |
| Check federal and state rules before any deduction |
Assigning Equipment to New Hires
Equipment checkout works best when it starts on day one. When a new employee starts:
- Prepare their equipment list before the first day.
- Record serial or asset numbers and condition.
- Walk through how to use and care for each item.
- Have the employee sign the assignment agreement.
- Explain how to report problems and how returns work.
See the new hire orientation checklist.
Personal Use of Company Equipment
Decide whether employees can use company equipment for personal purposes, such as a phone or laptop, and put it in writing. Many businesses allow limited personal use of phones and laptops but not tools or vehicles. Be clear about what's allowed, who pays for any personal charges and what happens if equipment is damaged during personal use.
Keys, Fobs and Access Codes
Keys and access codes are some of the most important items to track, because a lost key can mean a security risk, not just a replacement cost.
| Item | Record | When it's lost or not returned |
|---|---|---|
| Building keys | Key number and who has it | Consider rekeying |
| Fobs and badges | Fob ID and access level | Deactivate immediately |
| Alarm codes | Who has which code | Change the code |
| Safe combinations | Who knows it | Change when someone leaves |
Quarterly Equipment Audit
Every few months, compare your equipment list to what's actually on hand:
- Check every tagged item against the list.
- Confirm long-term assignments are still accurate.
- Look for items checked out for too long.
- Retire broken or obsolete equipment and update records.
- Note items that are used often and may need duplicates.
Remote Employees
Employees who work from home often have laptops, monitors, headsets and phones. Use the same assignment agreement, ship equipment with tracking and include a prepaid return label when employment ends. Keep a record of shipping dates and tracking numbers so returns can be confirmed.
Quick Reference
| Question | Answer |
|---|---|
| Shared tools | Daily sign-out log |
| Assigned devices | Long-term assignment agreement |
| Condition | Record at checkout and return |
| Offboarding | Collect everything before the last day |
| Deductions | Follow federal and state law |
Equipment Checkout for Job Sites
For crews working at job sites, equipment often leaves the shop in a truck and moves between jobs. A few habits keep it from disappearing:
- Assign tools to a truck or crew, with a truck inventory list.
- Have the crew lead check the truck list at the end of each job.
- Log tools borrowed from another crew or the shop.
- Mark tools with your company name or color so they don't get mixed with other trades' tools.
- Take a quick photo of the truck tool bin at the end of the day.
Example Truck Inventory
| Item | Asset # | Qty | Checked (Mon to Fri) |
|---|---|---|---|
| Cordless drill kit | T-104 | 1 | ☐ ☐ ☐ ☐ ☐ |
| Multimeter | T-211 | 1 | ☐ ☐ ☐ ☐ ☐ |
| Extension ladder | L-02 | 1 | ☐ ☐ ☐ ☐ ☐ |
| Fire extinguisher | S-17 | 1 | ☐ ☐ ☐ ☐ ☐ |
| First aid kit | S-31 | 1 | ☐ ☐ ☐ ☐ ☐ |
A simple daily check takes two minutes and catches missing tools while there's still a chance to find them at the last job site.
Getting Started This Week
You don't need to tag everything at once. Start with the ten items that are most expensive or most often missing. Tag them, set up a clipboard sign-out log and ask everyone to use it for two weeks. Review the log each Friday. Once the habit sticks, add more items and move to a spreadsheet or app. Small, consistent steps beat a big inventory project that never gets finished.
Share what you learn with the team, such as which tools are used most and which keep going missing. When employees see the log helps them find what they need, they're more likely to use it.
Replacing vs. Repairing
Checkout and condition records also help you decide when to repair or replace equipment. If the same item keeps coming back damaged or is checked out constantly, it may be time to buy a second one or upgrade to a more durable model.
Equipment Checkout and Insurance
Accurate records of what you own, where it is and its condition can help when you file an insurance claim for stolen or damaged equipment. Keep purchase dates, serial numbers and photos with your equipment list, and review your coverage with your insurance agent, especially for expensive tools and devices that leave your premises.
Equipment that's tracked gets taken care of. When employees know items are recorded, returned and checked, losses drop and tools last longer.
Finally, make returning equipment easy: a clearly marked return bin, a set place for each tool and a quick sign-in step at the end of the day.
Review your equipment policy each year, update the forms when you add new types of equipment and remind employees how checkout and returns work. A short reminder at a team meeting keeps the habit strong.
Clear records also make it easier to plan purchases and budgets for the year ahead.
Track Equipment With Updoot
Updoot's asset tracking keeps a record of every tool, device and vehicle and who has it, with checkout history in one place. The mobile time clock shows who was working each job, and SOP management keeps your equipment policy and agreements organized.
Sources
- U.S. DOL Wage and Hour Division: Opinion Letter on Deductions for Loss or Damage (March 10, 2006)
- U.S. DOL: Fact Sheet #17G, Salary Basis Requirement