Are you confident that fixed assets are accurately reflected in year-end financial statements? If not, periodic physical inventory taking and reconciliation are essential internal controls towards building confidence.
Verasset provides asset verification services, with emphasis on fixed assets. Our core offerings apply to validation of fixed asset financial records, which entail performing diagnostic reviews of fixed asset financial records, planning and conducting wall-to-wall physical inventories, reconciliation of fixed asset registers and ledgers and fixed asset life cycle optimization consulting.
We start by understanding the current health of your records. Common problems identified by our diagnostic review of fixed asset records include, but are not limited to, the following:
The methods which we use to conduct the diagnostic review focus on sorting and reorganizing your fixed asset accounting records, such as fixed asset registers and sub ledgers. The diagnostic review entails breaking the fixed asset accounting entries into components.
Components enable Verasset process specialists to categorize fixed assets into classifications such as: tangible, intangible, requires research (for entries such as purchase order numbers and project codes, or other line items that are bundled), etc. Once fixed asset accounting entries have been compartmentalized, they are further analyzed in order to decide on the best approach for executing the verification stage.
The review and analysis results in a series of management reports that are used to present a set of operating metrics that will be used to guide the project (i.e. how much value and how many assets are we trying to validate and where). Findings accumulated from the review are used for compiling recommendations for improving fixed asset financial data collection and reporting.
The diagnostic review is also useful planning for the physical inventory effort. For example, applying focus on high value assets, determining types of information to be collected and determining which locations and which asset categories will require more intense effort (in order to reconcile vague of incomplete accounting records) than others as the inventory process is underway.