Roles and responsibilities in fixed asset management

Fixed asset management is often a group effort in an organization, as many different positions share responsibilities. From the CFO to the Internal Auditor, each position plays a role in maintaining and reporting on the asset register and assuring the record system is accurate.

The CFO and Controller have primary overall responsibility for internal control and fixed asset acquisition, management and disposition. Usually, one or more individuals are given direct responsibility for maintaining the software system and input from others in the organization is imperative. This can sometime cause a breach in communication, as in many organizations, the property accountant has difficulty obtaining cooperation from higher level managers in other departments.

The Property Accountant is at the heart of every successful fixed asset system and the related internal controls. This is an important job. The individual(s) have far-reaching responsibilities in virtually every aspect of the organization’s operations, including tax, insurance, IT, strategic planning and budgeting.

The Tax Manager has perhaps the single biggest role in utilizing the property record to optimize the organization’s cash flow. Federal and state taxes on income are directly affected by depreciation and amortization charges. Property tax assessments are usually based on information supplied by the tax manger from the property record. The choice of lives, depreciation methods and individual asset basis for tax purposes can significantly affect cash and reported income. We do not recommend, however, that tax departments have the primary responsibility for the property record system.

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