Keeping Track Of Your Assets

Companies that have any physical assets are required to create an inventory full of the assets that they own at the end of each year. This list is used to keep track of and document where all their assets are located and how much they are all worth. This particular process is considered to be a part of the preparation that is needed at the end of every year and could take up to a month to complete.

In most cases there are four items that must take place when putting this list together. You must review the asset list against your financial records, physically inspect each asset that you have, determine the valuation that has to change, and add any new assets that you have acquired. If you have an asset management software than this will be quite easy for you to do.

Most businesses, large and small, will have recorded all of their assets and where they are located. This will cut out a lot of time needed to complete the inventory. The most time consuming part will be inspecting each item to determine the condition it is in. Any item that was ruined or gotten rid of must be removed from the list.

When you are finished inspecting them you can move onto organizing them by their physical location. They must each be given their own unique number and a way in which the item can be included into the inventory. Many businesses will use stickers or bar codes that they can easily scan each year.

Any new item that was purchased has to be added to the inventory list along with where it is located and what the value of it is. Make sure to also add a description of the item. If some of the new items that were purchased are not at the business than they do not need to be included on the inventory sheet.