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Tracking the quantity, location, condition, and maintenance of fixed assets is a challenge for most organizations. Fixed asset reconciliation services assist organizations to tally and bring together different data set assets to ensure accurate and proper valuation of assets. A well-defined reconciliation process helps in tracking and determining the money trails of an organization. We at Outsource2india have over two decades of experience in providing organizations across different domains with fixed asset reconciliation services.
Our clients leverage our fixed asset reconciliation statement to identify and establish book value, debits, and credits to fixed asset accounts along with accumulated depreciation. In the process, we ensure accurate reconciliation of the fixed asset register of the company. We bank on spreadsheets, FAR i.e. Fixed Asset Register, or an ERP system like SAP to track and update the valuation of the assets through well-defined audit activities.
As a well-known name among fixed asset reconciliation services companies we provide the following services across industries -
Every year, a company's fixed assets - such as plant, property, & equipment - undergo changes in their market prices. Every company must account for changes in asset value with the help of cost methods or revaluation techniques. We help companies compute or review the fixed asset value to indicate the correct value as on the closing date and thereby facilitate proper fixed asset reconciliation.
With this service, we identify the depreciation of fixed assets to enter their true value in audit reports. Some such fixed assets include buildings, machinery, and office equipment. We conclude after considering a host of factors such as overuse, aging, and damage and banking on a few well-established computing methods such as straight-line depreciation, double declining balance method, service unit method, etc.
We help organizations review depreciation computations before they reconcile them in their balance sheets. This helps in establishing accuracy in the process. Our review service looks into factors that have been taken into consideration to compute depreciation and relooks at the methods used to compute the asset value. Our clients leverage this service to validate the recording and manage and reconcile the list of assets.
Not all fixed assets are eligible for depreciation computation. For instance, land is one such asset. Similarly, betterments or improvements made to depreciable property should be depreciated separately from the original depreciable property. When a new property is added as an asset we look into the feasibility aspect of whether it is acceptable or not as per law. This service assists in the proper mapping of assets for proper reconciliation.
It is mandatory for organizations to de-recognize a fixed asset when they sell the asset to another party or when the asset is disposed of because it is no longer operational. This process involves removing the cost of the asset and other accrued depreciation and impairment losses from the balance sheet, registering cash receipt, and the resulting gain or loss in the balance sheet. Our services ensure that the removal of the fixed asset followed by reconciliation has been appropriately implemented.
The fixed asset statement is a comprehensive account of all the above-mentioned asset reconciliation requirements. In other words, it states the accuracy of the value, the correctness of the methods used, the value with terms of the closing date, the acceptability of new assets, and so on.
We have a well-defined fixed asset reconciliation process to compare two sets of records. We bank on this robust process to ensure the figures are accurate and reflect no inconsistencies whatsoever and determine the money trail. We perform and prepare fixed assets reconciliation statements in the following ways -
Our first step towards fixed asset reconciliation is to ready the previous year's fixed asset balance. This helps us understand the depreciation rates applied and the useful lives of assets, both of which are critical in reconciling the current year's fixed assets
In this step, we cross-check the fixed assets register to verify the date of placement and date of removal of the asset from the performance. We scan through the authorized invoices to find out the balances of amounts of purchases and disposals. Besides this, we also cross-verify ancillary costs such as shipment, delivery, installation, and set-up costs and ensure they have been capitalized. If the assets are added in the form of construction, we review the capitalization of interest
In this step, the useful lives of assets are assessed along with impairment assessment and computing the depreciation value. In other words, we look into whether there is lesser or higher deterioration in the performance of the assets. In case of a permanent decline in the value of the assets, we assess and provide the impairment value of the asset. The impairment is reconciled in keeping with organizational guidelines and the applicable accounting standards. Likewise, the depreciation rates are applicable as per the regulations. In this stage, we closely check and reconcile the depreciation rates for current-year purchases and disposals
Organizations must have an internal control system to check the assets physically. This is done routinely to assess the health status of the assets and ensure steps are taken to maintain their original condition. All the assessment information is logged in to the logbook. We check the logs to know the condition of the assets and the actual hours they have been put to use
This is the final stage of the fixed asset reconciliation process. It entails the verification of accounts and balances and reconciling them with the closing balance. At the end of this stage, we issue the reconciliation statement, which is a verified summary of the closing balances of the fixed assets
As a renowned fixed asset reconciliation provider, we offer a host of benefits to our clients. These include -
Proper fixed asset reconciliation services help you save on costs. Our services are designed to stop you from spending money on unnecessary assets. Some such benefits geared towards costs savings include avoiding the need to buy things that you already have or shelling out on insurance premiums for non-existent items, paying a licensing fee on software that is no longer installed, losing assets due to security lapses, paying the lease on equipment because it is not properly controlled, etc. We have a proven track record of helping organizations save 20% of their infrastructure expenditure by spotting under-utilization and inefficient maintenance.
Organizations need to abide by compliance laws that require them to keep an accurate account and to produce a balance sheet and profit and loss statement annually. To maintain this accuracy, organizations must have a well-defined and internationally acceptable way of computing the value of their fixed assets – their cost and their depreciation. We assist organizations to have straightforward and accurate statutory reporting to help them reconcile their assets in the most appropriate and standard way. Our services have helped our clients move to international accounting standards and be better prepared for globalization with standards at par with listed companies across the EU and US stock companies.
The International Financial Reporting Standards for asset management consists of a long list of requirements. Our fair understanding of the list will help you comply with all the mandatory requirements. Some such requirements include regular analysis of fixed assets, straight forward and customizable depreciation computation methods, different approaches for depreciation computation for finance leases and restatement of property, correct calculation method to assess depreciated value, revaluation and/or impairment to categories, subcategories, or components of assets, carry out different valuations and processing for a particular asset in parallel and furnish an end-to-end complete audit trail. By assisting you to adhere to IFRS standards we ensure your asset reconciliation process is consistent, transparent, and comparable around the world.
Our fixed asset reconciliation services help to generate a balance sheet with the summary of assets in the shortest possible time. The possibility of generating a quick balance sheet helps to tighten controls, thus preventing chances of loss or fraud in the correct representation of the fixed assets and their reconciled value. With the elimination of deficiencies in the report, auditors find it easy to wrap up their job fast and in shorter times than usual. We integrate our reconciliation process with the latest software technologies to make asset audits quick and accurate. Our services ensure organizations are not caught napping in having the correct balance sheet.
Inaccurate information on fixed assets leads to a lack of transparency which in turn impacts the preparation of correct balance sheets. The other fall out of this is the inability to manage risks. However, our fixed asset reconciliation services help you establish complete transparency in fixed asset management. Our services help you understand the use of fixed assets, their worth, and how much it is costing your service. A proper analysis of the three helps you foresee issues, weigh the pros and cons, and make informed business decisions based on accurate and up-to-date information. Our experience in managing fixed assets with elaborate data helps you make the right decision at the right time.
Our fixed asset reconciliation services help in the proper tracking of fixed assets. Given that assets such as IT equipment can easily get out of control, we help you establish the control needed to identify the physical location of IT assets, identify all software and hardware changes over the life span of a PC, ensure compliance with software licensing; verify and be up-to-date with maintenance contracts and insurance, keep a tab on replaced or scrapped IT equipment, identify hardware configuration requirements to support software upgrades, establish an end-to-end audit trail of IT assets to reduce the cost of IT installation and ensure the efficient running of IT assets at all times.
Our fixed asset reconciliation service helps you establish a full audit trail of all your fixed assets. Our audit file holds a detailed list of all actions taken. A browse through our records will throw light on what was amended with pre and post-maintenance detail, thus giving you a clear view of all your assets and thereby introducing fool-proof internal controls.
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Outsource2india has over 23 years of experience in ensuring accurate fixed asset reconciliation services. Driven by a team of dedicated and professional fixed asset consultants we render services to eliminate fraud and financial misstatements. In the process, we have ensured that fixed assets are accurately portrayed in the year-end financial statements. Our services have helped our clients trace and inventory accounts to the fixed assets accounting record, identify fixed assets that were incorporated in the fixed assets accounting record but went unrecorded as well as identify assets that were inventoried but not identified in the assets accounting record. We bank on best practices to assist our clients with highly accurate results within the specified deadlines. Over the years we have been recognized as a fixed asset reconciliation company that commits itself to proper valuations, accounting, and financial reporting.
If your business is looking for the best fixed asset reconciliation services, please get in touch with our experts now.
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