The same as you count your inventory; you should also count your fixed assets. I know it may seem odd, they are all there you may say and you can see them, but imagine if you have assets all around your premises and some even in the custody of your employees. How would you then ensure they are all there?\u00a0<\/p>\n
Having regular, that is at least once a year, physical assets count, gives you assurance that the assets actually do exist. The assets you\u2019ve accounted on your balance sheet and that you consider to be in use actually exist.<\/p>\n
Another pro for physical asset count is getting an idea how the condition of the assets is \u2013 are they broken and not being actually used (they may exist, but a fixed asset on your balance sheet should also be used in your business) or maybe they wont be usable for their remaining useful life? Those are the questions your physical asset count should also address.<\/p>\n
Should the asset not actually be in use, it should be disposed or sold if possible. An asset, which will be used for a shorter period than its remaining useful life, should be addressed accordingly in accounting \u2013 the useful life shortened and the depreciation expense increased accordingly.<\/p>\n
So do not underestimate a physical asset count that\u2019s done properly.<\/p>\n","protected":false},"excerpt":{"rendered":"
The same as you count your inventory; you should also count your fixed assets. I know it may seem odd, they are all there you may say and you can see them, but imagine if you have assets all around your premises and some even in the custody of your employees. How would you then […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,75],"tags":[],"class_list":["post-4660","post","type-post","status-publish","format-standard","hentry","category-3-controls","category-3-4-regular-control-procedures"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t