You’d be surprised how often we come across unsafe, outdated or superseded assets, including electrical items. If you are working in a high risk environment like Aged Care or Health, your residents are your #1 priority. An asset register linked to a maintenance schedule is your insurance against falling, sparking, rusting or breaking assets that are used every day by residents or staff.
How does an audit of company assets help you keep accurate financials?
To balance your fixed asset sheets within your company financials, you’ll need some kind of list of your assets. If you omit some assets or their value or cost to maintain is not accurate, your financial records will be inaccurate, which can be a pain for your accountant and leave you short of information for your next board report.
As a refresher, here is how your assets behave over time, from a financial perspective:
Asset Purchase Price – Accumulated Depreciation = Asset Carrying Value
Combined Amount of Assets’ Carrying Values – Disposition of Assets = Account Balance of Fixed Assets.
If your company has a public profile, you will need accurate records of your assets to maintain a balance in your equities and investments. Charities, educational institutions, Government or private companies are advised to track and classify asset details by their grants, funding sources or investors.
Comments