Nowadays, the improvement of accountability is extremely important because it contributes to the more effective management of the organization and, what is more, the effective accountability can facilitate the strategy of the development of an organization. In this respect, it should be said that accounting for fixed assets may play a crucial role in the improvement of an organization’s accountability. At any rate, the organization I am currently working at has focused on the improvement of accounting fixed assets.
In order to better understand the best way of accounting for fixed assets, it is primarily necessary to briefly dwell upon the essence of fixed assets. It should be said that fixed assets consist of land and improvements, buildings and improvements, furniture, equipment, vehicles, and construction in progress. In fact, these assets represent a constituent part of an organization’s investment funds. This is why it is really important to establish a really effective control over fixed assets that naturally implies the development of an effective system and methodology of accounting for fixed assets.
Basically, the effective accountability for fixed assets may be achieved by means of the development of a complete property control system. This system includes the policies and procedures for recording and controlling fixed assets as well as the fixed asset information itself (Mohrman, 2005). In actuality, such system may be quite beneficial to the organization that implements it. To put it more precisely, this will provide an opportunity to develop an effective centralized control over assets, including safeguards against theft and misuse. Also it can help to increase the efficiency of the property using. Furthermore, the system of control will help to accumulate data for more effective current and long-range planning for fixed asset acquisition, replacement and maintenance. It should be said that it is also necessary to have property records in order to preserve the essential information in the case of fire or any other casualty loss. Finally, such a system is simply essential to proper valuation and classification of fixed assets.

Recently, in addition to the strengthening of the system of control, the company has focused on the development of the new system which should take into consideration depreciation as one of the most important factors that influences the eventual accounting of fixed assets (Peters, 2006). This is really important since it opens new opportunities in the proper accounting and assessment of fixed assets. Also it should be said that the new system of accounting based on a new approach, different from the one which is widely spread at the moment, should be applied on different levels and in different organizations, including not only government organizations where fixed assets are at the higher risk of being deteriorated but also in other organizations, including companies as well as not-for-profit organizations.
Thus, it is possible to conclude that the discussed above accounting for fixed assets can improve consistently the performance of an organization and its accountability.

Custom essay writing services ESSAY-911.com. Buy essays online!