Physical reconciliation of PP&E records

The only way of assuring that the property record system is correct and accurate is to reconcile the records with the actual fixed assets physically present. In short, one has to take and reconcile a fixed asset inventory, just as is done annually with finished goods inventory.

Using spreadsheets and antiquated systems is time-consuming and requires the active involvement of management personnel. A good fixed asset management system that utilizes barcode technologies will speed up physical audits, making them both fast and efficient.

The procedure is a simple one that involves downloading information from the asset register onto an inexpensive, handheld device. The operator then scans the barcode labels for all assets, automatically recording where they are located and, by exception, noting assets that are not found. The data is then uploaded into the fixed asset system and management is presented with a change report for final authorization before the data is processed against the asset register.