Physical verification of Fixed assets:
Every organization must ensure that they efficiently use the resources without much affecting the quality and quantity.
This has been one of the top most priorities for the Finance and Admin teams as they are the caretakers of resource management.
Asset verification is such time taking process, as well it is mandatory for organizations to conduct an annual physical count of all the fixed assets to check for their depreciation, resale value, verifying the accuracy as there would be continuous addition and disposal of items regularly. Estimating the remaining utilization factor is something that is equally important to evaluate the life cycle of the particular product/ resource.
Not estimating your fixed assets is a risk?
Well, the industry experts says yes! You should be annually evaluating in order to avoid the unnecessary complications and sudden deficiency in the resources.
Having a track and managing the fixed assets is critical and a compulsory periodic process that should be carried out in the organization. Maintaining a fixed asset register helps, generally the fields present are:
- Net book value,
- Current and accumulated depreciation rate,
- Location of the asset,
- Custodian rate,
- Cost of the asset,
- Asset use life or depreciation rate.
As per the recent stats, amongst assets that are tagged, about 62% of the companies conduct a periodic physical asset verification, 14% conducted by the staff, another 5% through third party companies, another 5% through cycle counting and the rest 14% do not conduct any asset tagging, a big mistake as per the industry experts.
For assets that are not tagged 33% do not physically verify untagged assets, 17% do cycle counting based asset description performed by company employees and 50% conduct physical inventory based asset description performed by company employees.
Do’s in Physical asset verification:
- Estimate and gather what you need to track or tag,
- Understand the full project management life cycle,
- Select software which can help you with reporting and analytics functionality,
- Track assets as they get added in to the company,
- Use a simpler barcoding system for allocating the unique identification number,
- Choose who can provide best service for you,
- Understand the difference between asset tracking and inventory tracking,
- Conduct a critical equipment analysis,
Don’ts in Physical asset Verification:
- Not balancing costs and calculating risks would be a dangerous business,
- Not setting a defined strategy,
- Not creating a well maintained database,
- Not eliminating unused or ghost assets,
- Not having regulated standards that has to be followed,
- Not having a clear plan for the future on resource utilization,
- Not having regular maintenance and fixing,
Why you should consider Tracet for your Fixed Assets?
- Tracet comes with integrated barcode labeling technology which makes it easy to design your own asset tags,
- Get access to the necessary information needed for managing your organization assets and thereby increase efficiency,
- Receive notification of overdue checkouts, expiring warranties, schedule maintenance, certification/calibration, and more,
- Quickly conduct audits on any handheld device using Barcode/ RFID scanner to ensure 100% asset compliance,
- Automate check-in and check-out of assets to employees, vendors, or customers to ensure no assets get misplaced,
- Effectively record scheduled or unscheduled maintenance entries and help keep full maintenance history of your assets,
- Track assets by site, location, serial number, users.
And many other,
Track, manage and comply your enterprise fixed assets across group companies or individual branches along with asset verification. With web based, mobile friendly and cloud ready Tracet solution address your fixed asset management difficulties.
Talk to our product specialist and understand how Tracet can make things simple for you! Tracet your complete fixed asset management solution.