To simplify the reconciliation process and prepare the fixed asset register, we make a copy of the existing register and reorganize the information contained within it.
Each entry in the register is evaluated on a line by line basis. The task begins by identifying intangible and tangible entries. We then categorize entries into similar high-level classifications such as furniture, IT, vehicles, and so on.
Vague and bundled entries (entries where a single line represents multiple assets) are further refined by assigning them sub-classifications such as IT – Laptop, Furniture – Task Chair, and so on. The intent with the categorization effort is two-fold:
- To ascertain and prioritize reconciliation roadblocks. Using this information, extra effort is made during the physical count to obtain more detail that may assist in achieving success when comparing the register to the installed asset.
- Through categorization to divide the register into smaller more manageable segments of information.