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Fixed Asset Reconciliation

When we perform a fixed asset audit, we often suggest it is paired with our fixed asset reconciliation services. Reconciliation is a critical part of tracking and determining the money trails of a company.

 After completing both the fixed asset audit and fixed asset reconciliation, we provide an audit certificate for your company records. This is especially important when maintaining Sarbanes-Oxley compliance. It is necessary to conduct a manual reconciliation of a client’s “floor” fixed assets with their “book” fixed assets in most cases. Assertive’s systematic method of reconciliation yields cost-effective information for our clients.

This fixed asset reconciliation process identifies “phantom assets which have been retired physically, but not financially. The reconciliation process provides significant personal property tax savings for clients and an immediate ROI.

The scope of manual reconciliation work depends on the detail and serial number and asset tag number information in the client’s original fixed asset listing. In addition, the failure to have assets labeled with number tags or the subsequent removal of asset tags will require that manual reconciliation be conducted. Manual reconciliation requires discussion and inquiry between Assertive and clients.

The Fixed Asset Reconciliation Statement

Predominantly, the fixed asset reconciliation statement handles the management of the following:

  • The depreciation on fixed assets has been accurately charged or not.
  • The addition of any newly introduced assets to the company’s specific accounts is acceptable or not.
  • The removal of fixed assets has been appropriately implemented or not.
  • The fixed assets indicate the correct value as on the closing date or not after several adjustments.

Your fixed asset reconciliation statement shows a list of book value, credits, and debits to fixed asset accounts and accumulated depreciation vital for the company’s reconciling sheet and fixed asset register. Planning your fixed asset reconciliation statement can be a complicated task. The accuracy of business reports and financial statements is crucial to many stakeholders.

These reports are used to make important business decisions, and incorrect fixed asset reports can negatively impact those decisions. 

Performing regular fixed assets reconciliation is one of the most important processes and controls the assurance of fixed assets’ accuracy and existence reported in the balance sheet.