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Fixed Assets Management checklist
Acquisition and Recording of Fixed Assets
Establish and document policies for capitalization thresholds and asset classification.
Verify that all newly acquired fixed assets are recorded accurately in the fixed asset register.
Ensure that supporting documents for acquisitions, such as invoices or purchase orders, are properly filed and linked to the appropriate asset records.
Depreciation and Amortization
Review the depreciation methods and useful lives of assets to ensure they are in line with accounting policies and any changes in usage patterns.
Perform regular updates of the fixed asset register to reflect depreciation or amortization charges.
Reconcile depreciation and amortization expenses in the accounting system with the fixed asset register periodically.
Asset Maintenance and Verification
Schedule and conduct regular physical asset verifications to confirm the existence and condition of fixed assets.
Compare the results of the physical count to the fixed asset register and investigate any discrepancies.
Review and update the insurance coverage for fixed assets to ensure adequate protection against loss or damage.
Disposal and Retirement
Document and authorize the disposal or retirement of fixed assets according to company policies.
Ensure that gains or losses on the sale or retirement of assets are correctly calculated and recorded in the financial statements.
Update the fixed asset register to remove disposed or retired assets and ensure that all related depreciation or amortization entries are ceased.
Internal Controls and Auditing
Implement segregation of duties to ensure that no single individual has control over all aspects of fixed asset transactions.
Develop a system of internal controls to prevent and detect errors or fraud in the management of fixed assets.
Coordinate with internal or external auditors to facilitate audits of fixed assets and ensure compliance with regulatory requirements.
Reporting and Compliance
Prepare and review periodic fixed assets reports for accuracy and completeness.
Ensure compliance with local, state, and federal regulations regarding fixed asset accounting and reporting.
Maintain documentation for audit trails and support compliance with tax laws related to depreciation, credits, and deductions for fixed assets.
