What is the purpose of the Fixed Asset Reconciliation report in Xero?

The Fixed Asset Reconciliation report in Xero serves the key purpose of verifying that the asset register matches the balance sheet. This reconciliation ensures that the values of fixed assets recorded in the asset register align with those reported on the balance sheet, which is crucial for maintaining accurate financial records. It helps identify discrepancies or errors, ensuring that all asset transactions are accurately reflected in both documents. This verification process is essential for financial integrity, audit readiness, and effective financial reporting.

While comparing assets with cash flow statements, generating new asset entries, or analyzing asset performance could be related to asset management, they do not specifically address the primary function of the Fixed Asset Reconciliation report, which is centered around ensuring the accuracy of the asset register in relation to the balance sheet.