Year End Reconciliation

As the end of the year approaches, many businesses are looking to finish projects that have been lingering. They’ve put them off all year and now need to get them completed. They also need to spend the money before the year is up. This often includes physical inventory and reconciliation of the fixed asset register. If […]

read more

Asset Recovery

There are many reasons to periodically conduct a physical inventory of assets. One often overlooked benefit is the potential for asset recovery. Asset recovery often leads to identification of idle assets. Idle assets not only cost money, but represent risk. For example, idle assets are likely not to be missed if they are stolen, whereas […]

read more

Fixed Asset Inventory and Reconciliation for Corporate Buyout

Verasset recently completed an in-depth physical inventory and reconciliation project for an automotive dealership. The dealership has been family owned and operated since inception. One of the majority shareholders was looking to sell his shares and get out of the family business. This was a complex negotiation they were looking to resolve quickly. A major […]

read more

Do you have Ghost Assets?

Do you have Ghost Assets? If you are like nearly 2/3 of businesses, the answer is, probably. Are ghost assets costing you money? Absolutely. It is estimated that at least 65% of companies have ghost assets listed on their general ledger. Based on 11 years of performing fixed asset reconciliation projects, we believe this number […]

read more

Physical Inventory and Asset Tracking Industry Focus – Manufacturing

Manufacturing companies, regardless of size, typically have a significant investment in capital assets. Regardless of what it is they produce, specialized machinery, tools, equipment, vehicles, etc., are used in daily operations. This is in addition to the everyday office equipment (furniture, IT equipment, etc.) used to run the business. If the company is publicly traded, […]

read more

The Role of Stakeholders in Effective Asset Management

Controls are necessary in order to ensure that asset management is occurring and as expected. There are many ways to achieve control and they will vary throughout the asset life cycle. For example, controls that apply to acquisition will differ from those of verification. However, the principal problem that is commonly experienced lies in record-keeping. […]

read more

Reconciliation Entry 8 – Establishing Conventions for Bundled FAR Entries

In the last entry, we touched upon register adjustments related to additions. Potential adjustments can also be associated with (but are not limited to): Removal of an asset that could not be verified during the physical count (referred to as a write down or write off) Change of location, which can impact property tax Allocation […]

read more

Reconciliation Entry 6 – Bundled Entries in the Fixed Asset Register

Reconciling physical assets to ledger entries, also known as matching, can take on a variety of forms. In fact, the reason to reorganize and categorize asset registers as an initial first step is to aid later on when attempting to compare and match records to assets. It is important to note that reconciling using assumptions […]

read more

ReconciliationMethods

As discussed earlier in this blog series, the first step in reconciliation consists of exact matching of physical assets to logical records using unique identifiers, such as the manufacturer serial number. Once all possible matches are made using this means, additional analysis is done and matches are made using various means. One means entails using […]

read more

Asset Reconciliation and Verification – Entry 1

A typical Verasset service engagement entails conducting a physical inventory, tagging assets, capturing information and reconciling the installed assets to financial records such as a fixed asset register. We begin by thoroughly planning the project. Our project planning encompasses many elements specific to the physical counting activity such as scripting data collection and establishing schedules […]

read more