All private or public organizations need to keep an accurate record of their assets for many reasons. One reason is so capital asset listings are ready for audits.
A capital asset is defined by GASB as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.
When assets are misstated, it harms the legitimacy of your asset reports and balance sheet. After year-end, it is important that you provide your auditors with a compiled list of all assets so they can work better and provide you with a better understanding of your association.
Sometimes compiling a capital asset listing after year end can seem super daunting especially if you didn’t update it throughout the year. Here are some tips to help you.
By implementing each of the recommendations above you will be better prepared to report your capital assets at year-end and have a lighter load around audit time. Year-end can be extremely busy so take the time during the fiscal year to update your reports and it will result in more accurate financial statements.
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.