Physical asset management and financial reporting are often treated as two separate disciplines within U.S. federal agencies. In fact, they are interconnected, and agencies need to understand the connections in order to effectively carry out their missions.
Agencies gain valuable insights from the intersection of physical and financial aspects, which allows them to make better-informed decisions, enhance operational efficiency and accurately represent their financial position.
Connecting asset data to financial reporting ensures the accuracy and reliability of financial statements. Accurate valuation of assets, depreciation calculations and assessment of impairments are critical components of financial reporting. Aligning asset management practices with financial reporting enables agencies to provide more precision in estimating asset value.
In this white paper, we explore the benefits that connecting physical asset management to financial reporting offers to agencies, and suggest some strategies for success.