XBert Type: Standard
Accounting Software: Xero
Country Restriction: All regions
Risk Type: Bookkeeping Risk
Business Function: Bookkeeping
Overview
The "Fixed Asset Account" XBert identifies discrepancies between the accumulated depreciation recorded in your fixed asset register and the corresponding balances in your general ledger. Such mismatches can lead to inaccuracies in your financial statements.
What it does
This XBert compares the total accumulated depreciation from your fixed asset register (excluding disposed assets) with the balance of the associated depreciation account in your general ledger. If a difference is detected, an alert is triggered, indicating a potential reconciliation issue.
How it works
XBert performs the following steps:
Identifies the accumulated depreciation account linked to your fixed asset types.
Calculates the sum of prior and current depreciation from the fixed asset register for all active (non-disposed) assets.
Retrieves the current balance of the depreciation account from your general ledger.
Compares the two figures. If they do not match, an alert is generated, specifying the account name and the variance amount.
Example/Use Case
Jenny from Acme Appliances entered a bill for a new laptop intended for the store manager. Leveraging the government's instant asset write-off scheme, she mistakenly allocated the purchase directly to the depreciation account instead of the appropriate asset account. This misallocation caused a discrepancy between the balance sheet and the accumulated depreciation reported in the fixed asset register. XBert detected this inconsistency, prompting a review and correction.
Accounting software
This XBert is compatible with:
Xero
Which countries it supports
All countries where Xero is used.
Processes
This XBert falls under the Bookkeeping – Fixed Assets category.
To action:
Click on the account link in Xero to review the depreciation account details.
Identify any transactions that may have been incorrectly allocated.
Adjust the entries to ensure the depreciation account balance aligns with the fixed asset register.
Confirm that all fixed assets are correctly registered and that depreciation is accurately recorded.
Regular reconciliation ensures the integrity of your financial statements and compliance with accounting standards.