Inventory and fixed asset accounting

What the work produces

We organise inventory or asset registers, movement reconciliation, capitalisation decisions and periodic review schedules. The assignment can distinguish owned goods, goods at third parties and items held for others.

For inventory, the agreed pack can identify opening quantities, receipts, issues, transfers, adjustments and closing quantities by item and location, with a reconciliation to the available accounting records. Differences between physical records and the ledger remain visible until their cause and proposed treatment are established.

For fixed assets, the register can connect the item identifier, description, acquisition evidence, location, custodian, movements and disposal record. Supporting schedules and proposed accounting adjustments are prepared for management review under the agreed reporting basis.

Inputs to organise

• Stock movement reports
• counts
• purchase and production records
• asset invoices
• location and custodian details
• disposal records
• valuation policies.

Identify the record owner at each warehouse, production site or office. Provide the date and scope of any count, how movements during the count were handled, and who investigated discrepancies. Separate third-party stock arrangements from goods physically present but owned by the business.

For assets, supply handover or commissioning records where available and identify items under installation, transferred, idle or awaiting disposal. Missing tags or incomplete historic records should be recorded as gaps rather than filled with assumed dates and values.

What good records help you see

Equipment delivered late in the year may not be ready for use at receipt. Record the actual commissioning evidence rather than using the invoice date as the only basis for every accounting decision.

1. Agree the items, locations, period and source registers within scope.
2. Reconcile movements and identify missing references, duplicate items and inconsistent units.
3. Trace material differences to count records, receipts, transfers, production or disposal evidence.
4. Document proposed corrections and the approvals required within the business.
5. Hand over revised schedules with unresolved discrepancies and their owners.

Example: equipment moves to another office but remains assigned to its previous custodian. Update the location and responsibility trail using the transfer evidence, and investigate whether the accounting records also need a change. The physical move and an accounting disposal are different events.

Agree the boundaries

Physical verification, engineering valuation and specialist standards advice are included only when expressly agreed.

Confirm the covered entities, periods, systems, deliverables and fees before work starts.

Specify whether the work covers register preparation, reconciliation, count coordination or attendance at physical verification. The business retains responsibility for custody and the completeness of movement records. Condition assessments and technical valuations may require a separately appointed specialist.

Connect the final schedules to monthly close and retain the evidence needed for audit preparation. A reconciled spreadsheet does not, by itself, establish the physical existence or condition of every item.