Often overlooked, fixed assets need attention in order to ensure proper accounting, valuations and financial reporting. While many organizations never preform an inventory of current fixed assets and corresponding reconciliation, these tasks provide an essential internal control for the financial reporting of fixed assets.
This article will help you understand the risks of not maintaining fixed asset accounting records, the reconciliation process and the importance of conducting an inventory of your fixed assets. Fixed asset inventory and reconciliation procedures can help an organization withstand today’s increased level of fixed asset security. To ensure proper valuation of fixed assets and accurate financial reporting, organizations need to confirm the correct handling of these transactions.