How can I do an inventory of assets?

As part of the process at the end of the financial year, companies with physical assets are usually obliged to complete an asset inventory. The purpose of the assets inventory is to physically calculate and document the location of all assets listed in the financial statements. This process is considered to be part of the preparation required each year and is usually planned three to four weeks before the real end of the year. This process can be simple or complex depending on the number of assets and their relative location. It is important to note that this inventory can be completed by an internal employee or a third party. The most important part of this inventory is to ensure that each item is physically checked.

The first step in the inventory of assets is to review the list of activists in the financial statements from the previous year. All items that have been destroyed or dismantled during the year should be removed from the list. A copy of the instruction and valuation of the item at this stage should be added to the file.

The next step is to arrange asset by a physical location in preparation for the inspection. A list of supplies should be arranged for the purpose of preparing. Each item should be issued a unique number and way to find out that the item has been included in the inventory. Some companies use stickers, while others use a barcode scan system to update records.

There are two items that must usually be checked during the inventory of asset: the existence of the item at the point and status of the item. For example, if an item is broken or in disruption, it should be listed on the stock list. This May results in a reduced item valuation.

Any new assets that have been purchased or obtained during the year must be added to the list of assets. The details to be included are classifications of assets, description, location and valuation. Any items that are purchased but still on the premises, can be excluded from the List of Assets if their value is not included in the valuation of assets to the financial statements.