Fixed Asset Management

Managed

Correct management of Fixed Assets can have a substantial impact on the profitability of any company. Corporate taxation and insurance can be cut substantially by removing retired assets from the depreciation schedule. Manpower is saved through easy access to the corporate asset register, enabling staff to quickly locate and deploy assets as needed. Safety, risk and asset life are optimised through correct retirement and servicing, and money is saved through asset reuse, increased reliability and effective procurement. Effective asset management and capital expenditure are essential to the continuity, development and growth of any business organization, both small or large. They are closely linked to the goals and strategies of the Enterprise.

Organisations are increasingly finding that traditional methods of managing assets, such as the spreadsheet, no longer meet the increasingly complex needs of today’s organizations. For any organisation, having an accurate and robust asset register that shows the location, value and condition of assets can help ensure that resources are available and usable when needed as well as achieving compliance with key industry legislation. How an organisation manages its assets also has multiple effects on finances, from tangible costs of heightened insurance premiums through to neglected depreciation. Few organizations have the internal resources available to properly assess fixed asset inventory – especially when there may be years of questionable data to reconcile. There are software-based fixed asset management solutions out there designed to improve data quality, but none offers the validation of a physical inventory. And there are firms who offer statistically sampled inventory services, but the results are estimates at best.

The purpose of this procedure is to ensure that capital expenditure by the Enterprise is planned, evaluated, authorised, implemented, monitored and reported in a systematic manner to meet the objective of best practice. An effective asset register provides a means to track, secure, resource maximise and accurately value a critical component of your business - your active plant and equipment assets. Moreover, an asset register serves to meet your taxation, insurance, statutory and sale-of-business obligations.

A proper Fixed Asset Register is required for many reasons. There are compliance issues like Sarbanes Oxley. The changeover from GAAP to IFRS is a major contributor. Accounting errors are reduced. Keeping a proper Fixed Asset System ensures proper tracking of Assets of an Enterprise and entails a proper audit trail.

The only way to dispel any uncertainty about the financial accuracy of your fixed asset records is to undertake a wall-to-wall asset inventory and reconciliation which is the best practice for validating data quality for fixed asset management. Once the system is implemented and integrated, continuously monitor and keep the fixed asset register updated.

We at Fiscal Trail provide the full gambit of Fixed Asset Management Services. We provide a range of expert asset management services that allow our customers to ensure best practice asset management. Our Fixed Asset Consultancy Services provide a range of professional consulting services. At FTI our fixed asset consultants have years of consultancy, planning, implementing and servicing companies. We assist you in getting up and running quickly and as smoothly as possible.

We offer the following services in this area:

  • Fixed Asset Consulting Services.
  • Implement complex Fixed Asset Management Systems across multiple industry sectors.
  • Fixed Asset Inventory and Reconciliation.
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