Reconciling fixed assets

Fixed assets schedule defined:

The cumulative total of all accumulated depreciation in the report should equal the balance in the general ledger account for accumulated depreciation. The fixed asset schedule is routinely used by a company’s auditors to verify the existence of fixed assets, and to trace these items back to the general ledger balance.

RECONCILING FIXED ASSET ACCOUNTS:

Supplies list

  1. Fixed assets schedule
  2. Organization detail of postings (schedules or general detail)
  3. Reconciliation template
  4. Highlighter, pencil or pen and excel worksheet

Time to get started?

A separate asset class is assigned to each type of asset, including land, building, land improvements, computer equipment, software, leasehold improvements, service equipment, vehicles, and construction in progress.

For each asset class, the spreadsheet summarizes the balance at the beginning of the fiscal year, the current year additions, reductions, and transfers, and computes the ending balance. The computed ending balance is reconciled to the cost and accumulated depreciation balances on the general ledger balance for each fixed asset class. The total is also reconciled to the total fixed assets, net of accumulated depreciation, per the fixed asset system.

Are there items not reflecting on the fixed asset schedule but not the books?

Are there assets on the books but not on the fixed asset schedule?

Does the asset balance on the general ledger and fixed asset schedule match?

Does the accumulated depreciati0on on the general ledger and fixed asset match?

Is there any rounding or small variance?

Find the general ledger balance (store’s books)

Find the bank balance (should reflect on the vendor statement)

Once comfortable that all transactions are accounted for referring to the Excel template, complete the reconciliation.

 

“They call it coaching but it is teaching. You do not just tell them…you show them the reasons.”

-Vince Lombardi-