Asset Reconciliation

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Final Manual Reconciliation

In most cases it is necessary to conduct a manual reconciliation of client’s “floor” fixed assets with their “book” fixed assets. This reconciliation process identifies “phantom assets which have been retired physically, but not financially. The reconciliation process provides significant personal property tax savings for clients and an immediate ROI.

Assertive’s systematic method of reconciliation yields cost effective information for our clients. The scope of manual reconciliation work is dependent upon the level of detail and the existence of serial number and asset tag number information in the client’s original fixed asset listing. In addition, the failure to have assets labeled with number tags or the subsequent removal of asset tags will require that manual reconciliation be conducted. Manual reconciliation requires discussion and inquiry between Assertive and clients. The following outlines Assertive ’s systematic approach to completing manual reconciliation of clients fixed asset inventory:

  • Assertive reviews PEER\FA system reconciliation by serial number, bar-code number, or asset tag number
  • Assertive reviews with client the acceptable audit risk in terms of materiality to the financial statements as awhole
  • Assertive makes fixed asset file adjustments to client’s fixed asset file—Ex.: If client only captures last six serial number characters- Assertive will add or drop characters to facilitate matching process
  • Assertive sorts assets by standard description and collection code
  • Assertive visually examines fixed asset records, prioritizing high value records in order to reduce audit risk
  • Assertive researches purchasing records when cost-effective, for missing fixed asset details (serial numbers, quantity and type of assets purchased under each line item) to complete client’s fixed asset file
  • Assertive manually reconciles New Asset Report items (asset collected but not able to be matched to client’s fixed asset records by serial number, bar code or asset tag number) with Missing Asset Report items (assets on client’s fixed asset records but not able to be matched with physical inventory data by serial number, bar code number or asset tag number) by model #, serial #, description, manufacturer, and location
  • Non-taggable leasehold improvement assets are researched and generally reported as reconciled
  • Assertive analyzes any mass assets and makes recommendations for individual asset assignment and asset valuations
  • Assertive delivers preliminary reconciliation reports and requests client’s feedback
  • Client provides feedback and additional information enabling Assertive to finalize the reconciliation process
  • Assertive provides final reports: reconciliation, new assets, and missing assets

Costs based on budgeted hourly rates:

$45/ hour Asset Technician
$65/hour Data Manager
$75/hour Project Manager
$95/hour Project Executive
$125/hour CPA Manager

After reviewing a sampling of client’s fixed asset information, Assertive provides an estimated total cost for manual reconciliation.

To learn more call 678-447-0028 or send your E-mail to info@assetiveindustries.com