What is the purpose of the end-of-year inventory?

The purpose of the end-of-year inventory is fundamentally to verify the accuracy of property records before the fiscal year closes. This process ensures that all property is accounted for and that the records reflect what is physically present. By conducting an end-of-year inventory, organizations can identify any discrepancies between the recorded information and the actual items on hand. This is critical for maintaining accountability, ensuring compliance with regulations, and preparing for the financial assessment and reporting that occurs at the end of the fiscal year.

Other options might touch on related aspects of property management, but they do not capture the primary objective of the end-of-year inventory. While assessing the overall value of property or determining equipment replacement needs are important tasks in a broader property management context, they are not the specific focus of this inventory process. Similarly, conducting a general inspection of all property does not specifically relate to verifying record accuracy and is more about condition assessments rather than account reconciliation.