Optimizing the Asset Life Cycle Entry 8 – Stakeholders and Gatekeepers

To recap, so far in this blog series we have: Defined the asset life cycle and some relevant terms Established minimum sets of data needed to manage and track capitalized assets Identified control points, touch points and opportunities to introduce errors into the information flow We will now provide more detail pertaining to the roles […]

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Optimizing the Asset Life Cycle Entry #6 – Disconnect in the FAR Entry

In order to purchase new assets, a purchase order is created and submitted to a vendor. As the vendor delivers against the purchase order, packing lists and invoices are generated and remitted to the company making the purchase. The packing list is usually affixed to the packaging and shipped with the order. Invoices are normally […]

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Optimizing the Asset Life Cycle Entry 5 – The Balance Sheet

At a minimum, the following data elements should be accurately recorded and maintained: A unique means to identify each asset, such as a manufacturer Serial Number or an affixed Asset Tag Number Costs- both Purchase and Installed Costs Depreciation– current and accumulated Useful Life Location and/or Custodian of the asset In order to better understand […]

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Terminology of the Asset Life Cycle – Entry 4

While information can take many forms and be used for many reasons, our focus will be placed on the bare minimum required to track, manage and report on capitalized fixed assets.  It is equally important to identify several terms we will use. These include purchase and installed costs, accumulated and current depreciation, useful life and […]

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The Fixed Asset Life Cycle – Entry 2

As we begin to look at the fixed asset life cycle, it makes sense to define it. The asset life cycle represents the varying stages that an asset is processed through, from planning a purchase through retirement from service. Along the life cycle, business practices (procedures) are employed. For example, budgeting would one, purchasing would […]

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Risk Mitigation

Businesses face many risks every day. One major risk relates to managing and deploying large amounts of money while creating value for shareholders. Business property, equipment and assets represent a significant investment of money. Management of this investment depends partly on getting the right data at the right time and in the right format to […]

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Considerations for Conducting Effective Fixed Asset Reconciliation

Over the last decade, we have found that at a minimum 50% of fixed asset information is either inaccurate or incomplete. Therefore, the only reliable way to verify and validate fixed asset information is to conduct a physical inventory. All fixed asset inventory data should be centralized and reconciled against the existing data in the […]

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Maximizing Your Investment in Performing a Fixed Asset Physical Inventory

One important means towards maximizing your investment in performing a fixed asset physical inventory is to include expensed items, in addition to capitalized fixed assets, in the counting process. We recommend that the focus is applied toward expensed items with greater operational significance as well as those at a higher risk for theft or misplacement. […]

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Common Problems Reconciling Fixed Assets

Most organizations face significant challenges related to tracking the location, quantity, condition, maintenance and the depreciation status of their fixed assets. Typically fixed assets are recorded and maintained in either a spreadsheet or a fixed asset register (FAR). These records are then periodically verified through audit activities, such as physical inventory. In order to verify […]

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Reconciling the Fixed Asset Register

Tracking and managing assets is an important and usually daunting task for an organization, regardless of size. Fixed assets can be defined as property that a firm owns and uses in the production of its income. Examples of fixed assets include, but are not limited to, computers, tools, software, and office equipment. A company may […]

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