Finalise EOFY Fixed Assets 

Why finalise EOFY Fixed Assets? 

Finalising end-of-financial-year fixed assets ensures that all acquisitions, disposals, and valuation adjustments are accurately recorded. This process ensures we comply with accounting standards, generate accurate financial reports, and effectively plan for the next year. 

If you have been maintaining your assets throughout the year, you are already up to date with most of these tasks.  

How to finalise EOFY Fixed Assets? 

Here are the key procedures required to finalise EOFY Fixed Assets: 

1. Review and update the fixed asset register. 

1. 1. Verify Asset Information: Ensure that all fixed assets are meticulously recorded with precise details, including the acquisition date, cost, location, and asset category. 
   2. Add New Assets: Incorporate any assets acquired during the financial year that have not been previously documented. 
   3. Remove Disposed Assets: Eliminate or appropriately flag assets that have been sold, disposed of, or have been fully depreciated. 

2. Confirm asset acquisitions and disposals 

1. 1. Reconcile Purchases: Cross-check purchase invoices and receipts with the fixed asset register to confirm all acquisitions are recorded. 

   2. Record Disposals: Ensure that all asset disposals are documented, including sale proceeds, disposal costs, and removal from the register.

3. Calculate Depreciation

1. 1. Determine Depreciation Methods: Select and implement a suitable depreciation method in accordance with your business accounting policies. 
   2. Compute Depreciation Expenses: Calculate the depreciation for each asset up to the EOFY, considering any partial year usage. 
   3. Post Depreciation Entries: Record the depreciation expenses to update your asset values.  

4. Adjust asset values

1. 1. Impairment Reviews: Assess whether any assets have suffered impairment losses and adjust their carrying amounts, if necessary, in the Fixed Asset G/L Journal as an appreciation, write down or general value adjustments in the FA Posting Type. 
       

5. Reconcile fixed asset accounts 

1. 1. General Ledger Reconciliation: Ensure that the fixed asset ledger reconciles with the general ledger by matching asset balances and depreciation entries.  
       
      1. Search for FA Ledger Entries on the top right-hand corner of the page.  Then select and a FA Posting Date row. 
      2. Select Find entries to commence your reconciliation process.  
   2. Investigate Discrepancies: Identify and resolve any discrepancies between subsidiary ledgers and the general ledger. 

6. Close fixed asset accounts for the year 

1. 1. Finalise Entries: Ensure all asset-related journal entries for the financial year are posted and reviewed. 
   2. Lock Accounts: Prevent further modifications to fixed asset accounts for the closed financial year to maintain data integrity. 

7. Regular Audits Throughout the Year 

1. 1. Internal audit: Conduct periodic internal audits of fixed assets to identify and rectify issues promptly, reducing the year-end workload. 

8. Prepare for external audit 

1. 1. Organise Documentation: Gather all relevant fixed asset records, reports, and supporting documents for the auditors. 
   2. Facilitate Auditor Access: Provide auditors with access to the fixed asset register and related financial statements as needed. Quickly respond to any questions or requests for additional information from the auditors. 

9. Plan for the upcoming financial year 

1. 1. Review Asset Policies: Assess and update fixed asset management policies and procedures based on the previous year's experiences. 
   2. Budget for Asset Acquisitions: Prepare budgets for planned asset purchases or disposals in the upcoming financial year. 
   3. Training and Development: Ensure that staff involved in fixed asset management are continuously trained in new procedures. 

What’s next? 

Find out how to close the accounting period.  

If you have any questions, please reach out to support@wiise.com