Reconciliation is an important part of capital asset management. At HCA, we believe that reconciliation is a critical step in the inventory process because it ensures that the most accurate data possible is delivered.
Once all buildings have been visited with a first pass and you still have items unaccounted for, it’s time for reconciliation at the department level. This can often be the most difficult and time-consuming step of the capital asset inventory process, but it is critical that it is done correctly. Where many firms out there will give it a decent effort and then hand it back off to the client, HCA goes the extra mile to make sure all assets have been thoroughly reviewed and location documentation provided.
Why is Capital Asset Reconciliation Important?
When dealing with moveable equipment, reconciliation is important because:
- Reconciling invoices avoids duplicating capitalizations
- Items can be in locations that are difficult to find (ex: offsite, inside cabinets and drawers)
- Items may have been disposed of without prior department authorization
- Lastly, there can be discrepancies that exist in data (ex: incorrect serial number or incorrect tags) making it difficult to match the records that you have
How can Capital Asset Reconciliation Help Your Institutions Succeed?
When there are risks, accuracy matters. That’s why capital asset reconciliation can help your institution succeed. Not only does it help with ensuring the accuracy of your data, but it can also help with determining the following questions:
- Have the additions of new assets been accounted for?
- Has the disposal of assets been approved and correctly documented?
- Are you capitalizing your costs correctly?
To learn more about capital asset management, click here.