Inventory of fixed assets and equipment is carried out to clarify what property the company has at its disposal, compare its actual availability with accounting data, and identify damage or shortages. This is one of the main measures for the preservation of goods and materials, which disciplines personnel. All information obtained during the inspection is documented. If necessary, changes are made to the existing documents so that the reporting corresponds to reality. How to do it correctly is described below.
How fixed assets audit is conducted
The company’s fixed assets include objects used during production processes or for administrative needs. This includes transport, equipment, including computing equipment, buildings, structures, and inventory.
Inventory of used equipment and fixed assets in any organization is mandatory at least once every three years. The frequency and procedure of additional inspections are approved in the companies’ accounting policies. Before its conduct, the manager issues an order, which specifies:
- The reason for conducting the inspection (according to plan or due to circumstances);
- The timing and location of its conduct;
- The list of objects that will be inspected.
It also contains data on the members of the commission and the deadlines for submitting reports to the accounting department.
Depending on the schedule, it can be:
- Planned, conducted every three years;
- Unscheduled (conducted in the event of force majeure circumstances, such as fires or floods, or initiated by tax authorities if accounting violations are suspected);
- Initiative (by order of management).
An inspection covering all departments of the company is called a full or complete inventory. When the audit concerns a specific group of fixed assets, it is called selective. A repeat inventory is carried out if suspicions arise regarding the obtained results related to the dishonesty of interested parties. A control inventory is appointed after a planned one to confirm the data. By method of conduct:
- Physical inventory includes a mechanical recount of goods and materials on the balance sheet.
- Documentary inventory implies verification of documents for fixed assets. It is conducted together with the physical one.
- Manual, with filling out paper statements. Such an inspection requires a lot of time, and errors due to the human factor are allowed.
- Automated inventory is performed using special technical means, markers. Data for analysis is entered into an application. The process happens quickly, is highly accurate, and uses minimal personnel.
How exactly the process will occur depends on the enterprise management. But the main actions are constantly repeated:
- Preparation includes drawing up an order for the inventory. At this stage, members of the commission and its head are appointed, and the timing of the inspection activities is determined. Receipts are collected from financially responsible persons, and inventory lists are filled out according to pre-established forms (for fixed assets).
- Actual recount is carried out to verify the compliance of fixed assets and equipment in stock with documentary data. For this, their inventory numbers and characteristics specified in the accounting cards are checked.
- The obtained results are compared with the accounting ones, and based on this analysis, the accounting department prepares a statement closed on the date of the inspection. Each line is checked separately.
The results of the inventory are entered into lists, acts, and other forms approved by the relevant legislative bodies of the industry. They are filled out in two copies, without blots or errors. For documentary recording, ready-made printed forms can be used or own reporting forms can be developed, which must contain all items and details.
Why inventory of fixed assets is needed
The main task of inventory is to recount the fixed assets on the balance sheet and check if their quantity and condition match the accounting data. Its advantages:
- The ability to verify that objects listed on paper actually exist;
- Checking the correctness of assigning inventory numbers;
- Identification of surpluses or shortages;
- Monitoring the correctness of accounting.
Main documents for accounting
- The main list INV-1 reflects all objects that match or differ in actual balances from planned ones with inventory numbers, including those with violated operational features;
- INV-22 – this form formalizes the manager’s decision to conduct an inspection;
- INV-18 – this form is called the matching statement;
- INV-23 – the recount journal.
The INV-18 statement is compiled in several (most often two) copies, one of which is handed over to the employee, and the second – to the accounting department. In addition to quantity and parameters, it indicates the condition or operability of the company’s fixed assets, their inventory numbers, what they are used for, the degree of wear, damage, and defects or their absence. When inspecting buildings and structures, special attention is paid to the number of floors, the year of their construction, the area of the buildings (total and useful), and the construction material.
All data about equipment and fixed assets are entered into the form INV-3. Transport that is en route at the time of inspection or sent for storage to another place is accounted for in separate acts INV-6, INV-5.
How fixed assets inventory is conducted
Members of the commission conduct an inspection, compare the actual availability and characteristics of the equipment specified in the INV-1 list with the data from the registers. If discrepancies are identified, they are entered into a special document – the INV-18 statement. New and previously unaccounted objects are put on the balance sheet. If during use, machinery, equipment, and fixed assets have changed their properties or cost due to depreciation, this is noted in the statement. That is, as a result, after the inspection, the manager will have detailed information about the condition of the company’s fixed assets.
During the inventory, cases of theft and loss of property are recorded. Based on these data, management can contact the police for further investigation or initiate administrative proceedings to search for and recover damages from the guilty parties. For any case of discrepancies, explanatory notes are taken from responsible persons.
All results are recorded in writing. As a rule, no corrections are allowed in them, and blots are also not permitted. First, the actual data are indicated, and then the discrepancies found. If any change needs to be made to the document, the old entry is crossed out and the corrected one is placed above it. Any corrections are agreed upon with all members of the commission and signed by the employees to whom the fixed assets are entrusted for storage. The lines of the statement that remain unfilled are crossed out.
If responsible persons, after the completion of the inventory, discover errors or discrepancies in the compiled list, they are obliged to report this to the commission immediately, before the warehouse is opened. In this case, an additional inspection is carried out, and based on its results, appropriate changes are made to the documents.
On all pages of the list, the exact number of serial numbers present on it and units in pieces, meters, or other units of measurement are indicated with the signatures of responsible persons and representatives of the commission. This is necessary to exclude the possibility of additions and changes.
Fixed assets received by the company at the time of the audit are accepted by responsible persons in the presence of the commission. They are entered into a separate statement indicating the date, quantity, and amount. Proper execution of inventory results is of great importance for the company itself and for the controlling authorities, which form an idea of the organization based on the obtained data. If all discrepancies are officially confirmed, the manager can recover losses from the responsible persons. Also, competent reporting will positively affect the company’s reputation during subsequent tax and other inspections.
Our company has been operating for over 15 years, providing services for inspection and inventory of fixed assets and equipment to ensure the correctness of accounting and compliance with actual data. We use modern methods and equipment that guarantee data accuracy. We will identify shortages and help manage resources rationally. We will perform the inspection promptly and efficiently, without delays. If you need consultation or additional information, you can contact our specialists by phone. We will answer all your questions in more detail!
