Fixed Asset Reconciliation

Fixed Asset Reconciliation

We provide detailed asset inventory and reconciliation services to help clients address gaps in data visibility and reconcile their fixed asset accounting records to the corresponded inventory data.

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Physical Inventory to Fixed Asset Accounting

The effective management of fixed assets is an increasing challenge. Cloud migrations and changing regulations (SOX, IFRS, GAAFR, GAAP, etc.) have increased scrutiny over internal controls around the management of fixed assets reporting among companies. Often, issues with inventory management arising from insufficient tracking of asset additions and retirements, inaccurate assets ledgers inherited from prior transactions, and inconsistent tracking of fixed equipment and building systems lead to inferior records – that may contain ghost assets, grouped assets, vague descriptions and gaps in data visibility; exposing the organization to financial, tax and audit risks.

Fixed Asset Reconciliation
Fixed Asset Reconciliation

Our services include:

What’s our approach to reconciliation?

We have developed a comprehensive line-by-line reconciliation of the physical inventory to the fixed asset accounting records. This addresses each asset until it’s verified as a match, retirement or addition, as described below:

  • First, we proceed with the tag number match;
  • Manufacturers and models are then compared;
  • Location and department numbers are considered;
  • Fiscal year additions will be analyzed against estimated acquisition dates from the inventory;
  • Bulk purchase entries and grouped purchases are allocated to the individual assets;
  • We will conduct follow-up visits with departments to verify any
    residual asset.
  • Each line item on the fixed asset accounting record will receive a transaction code – such as, unrecorded addition, matched asset, and unrecorded retirement – to link it to reconciled inventory database.
  • Implementing the best-practice approach to asset management and withstanding an audit scrutiny.
Fixed Asset Reconciliation

Deliver the Reconciled Inventory Data to Populate your ERP System

Fixed asset transactions often represent the acquisition and disposal of assets and the allocation of related costs to reporting depreciation expenses. Our independent and objective fixed asset inventory and reconciliation services will deliver the reconciled inventory file in the layout required to populate an ERP System or IT Asset Management (ITAM) system. Increasing management efficiencies and saving hours of rework.

Automate your Data Collection Technology

Manual processes of inventory data collection with Barcode and Spreadsheets poses further challenges to in-house inventory and reconciliation procedures, as these require many hours and even days of manual work in properly recording and verifying information on the organization’s fixed assets. Our RFID Asset Inventory Management Software offers bulk asset check-in / out, automated line-by-line reconciliation, and real-time asset visibility with configurable audit reports, while being able to integrate with leading ERP systems like SAP, Oracle, Sage, IBM, etc.

Related Professionals

Fixed Asset Reconciliation

Wendell Jeveaux

CEO / President
Fixed Asset Advisory - Global Region
Office: +1 (347) 554-2629
Fixed Asset Reconciliation

Tiago Jeveaux

Managing Director
Fixed Asset Advisory - North American Region
Office: +1-347-706-3302, dial 2
Fixed Asset Reconciliation

Gustavo Zumel

Managing Director
Fixed Asset Advisory - North American Region
Office: +1-347-706-3302, dial 10

About Us

CPCON Group is a global leader in fixed asset advisory services, providing our clients with accurate data and automated tools needed for fixed asset management.

As a trusted partner in the area of fixed asset management to organizations for more than 25 years, CPCON provides endto-end fixed asset management solutions. Empowering clients to gain insights, manage risk and drive improved financial
reporting.

2,000+

Active CPCON Fixed Assets clients.

Global leader

of fixed asset advisory
solutions and technology-enable
expert services.

Fixed Asset Reconciliation
FAQS

Fixed Asset Reconciliation FAQ's

Fixed asset reconciliation is a process that ensures the accuracy of a company’s accounting records related to its fixed assets. It involves comparing the physical inventory of fixed assets with the accounting records to identify any discrepancies.

The process of fixed asset reconciliation typically involves several steps. First, you would conduct a physical count of the company’s fixed assets. Then, you would compare this count with the records in the company’s fixed asset register. Any discrepancies would need to be investigated and resolved.

There are many tools and software solutions available that can assist with fixed asset reconciliation. These can automate parts of the process, track assets, and generate reports, making the reconciliation process more efficient and accurate. 

 Common challenges in fixed asset reconciliation can include discrepancies between physical counts and accounting records, outdated or inaccurate asset registers, and lack of proper documentation. These issues can often be resolved through regular audits, updating asset registers, and maintaining thorough documentation. 

The specific regulations or legal requirements related to fixed asset reconciliation can vary depending on the industry and the country. However, in general, companies are required to maintain accurate records of their fixed assets for accounting and tax purposes.

Fixed asset transactions can include the purchase of a new asset, depreciation of an asset over time, or the sale or disposal of an asset. Each of these transactions would need to be accurately recorded in the fixed asset register.

While I can’t provide specific examples or case studies, the process of fixed asset reconciliation would typically involve a detailed comparison of physical assets and accounting records, investigation of discrepancies, and updating of records. The exact process can vary depending on the company and the specific assets involved.

Accounting rules for fixed assets generally require that these assets be recorded at their cost when acquired, and depreciated over their useful life. The cost includes all expenses necessary to get the asset ready for use. Depreciation spreads the cost of the asset over its useful life, reflecting the fact that the asset is being used up over time. These rules can vary depending on the specific accounting standards being used (such as GAAP or IFRS).

Fixed Asset Reconciliation

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