Fixed Asset Maintenance Reconciliation Software and Process

The Importance of Reconciling Maintenance Records With The Fixed Asset Records

A company’s fixed asset inventory is often like a snapshot – accurate the day it was completed, but inaccurate as time goes on and assets are purchased, retired, upgraded or maintained. This often occurs without the knowledge of the company’s finance and accounting personnel.

Which department within a company works closest with these assets? Maintenance. Can the maintenance department and the finance and accounting departments work together so the asset status on the books is continuously updated as asset maintenance is performed? With General Financial and Tax Consulting, now they can.

In a majority of companies, maintenance departments possess the most current and accurate fixed asset information. However, little of this information is shared with or imported into the company’s fixed asset system, and therefore is rarely included in the tax returns. While some maintenance departments may informally provide fixed asset information, there is no formal information sharing process and seldom, if ever, is information provided when equipment is replaced or moved to another location.

GFTC’s fixed asset maintenance reconciliation solution consists of a customized software application that enables continuous and accurate updating of the fixed asset ledger every time maintenance is performed on an asset. GFTC’s process begins at the maintenance level and provides correct and updated fixed asset information that can be imported into the fixed asset system. All assets in each system (maintenance and accounting) are inventoried and verified and the information is reconciled.

How It Works

GFTC’s fixed asset maintenance reconciliation process utilizes barcode technology to permanently tag each asset during an initial detailed inventory process. Once each asset is tagged and reconciled, when subsequent maintenance is performed on the asset, the barcode tags are scanned into the software so the data can be reconciled first to the maintenance system, then to the fixed asset system, and then to each applicable tax return.

This software system enables the maintenance department to improve and streamline the efficiencies of their maintenance work, while providing updated asset status information to the finance and accounting departments. All fixed asset data is reconciled to the fixed asset ledger and to the tax returns that are impacted by fixed assets.

How You Can Benefit

GFTC’s fixed asset maintenance reconciliation software and process ties into our fixed asset inventory program, giving you a comprehensive fixed asset management solution. In addition to an accurate listing of fixed assets and a correct fixed asset ledger, other benefits can be derived from a detailed fixed asset maintenance reconciliation program by GFTC. These include:

• Fixed asset records are automatically and continuously updated as maintenance is performed
• Maintenance processes are more efficient and streamlined
• A reduction in fixed asset management costs
• A reduction in SOX compliance costs
• A reduction in current year federal, state and local income taxes
• A reduction of real and personal property taxes
• A reduction in insurance premiums paid on fixed assets

Get Started

Whether you are ready to get started or have additional questions, the first step is to contact GFTC. We want to hear your questions and explain how we can work with you. Many of our clients have similar questions, and you may be able to benefit from their experience. Start by filling out and submitting the contact form on this web site. If you would like additional information, have more questions, or want to discuss your situation, call us at (800) 733-5252 ext. 7000.