Factors To Consider When Planning An Asset Stocktake Or Audit
An accurate asset register is the cornerstone of a company’s efficiency. Accuracy is best maintained by conducting a regular asset register stocktake. Through this process, a company is able to improve its financial planning, operational and maintenance planning, forecasting abilities and policy development. Regardless of the type of industry within which a company specialises, an accurate asset register will help instil confidence with budgeting and compliance procedures. Below are a few key steps that can be taken to facilitate an asset register stocktake.
Get ahead of the crowd, have an accurate asset base to plan and budget.
Determine the Number of Stocktakes or Audits that should Occur Annually
Stocktakes require time and resources. Whenever possible, it is helpful to plan asset stocktakes in advance. The ideal number of stocktakes that should take place depends upon several factors:
The number of business locations and types of assets that you have
Special industry requirements
Compliance
The current state of your asset register
Growing businesses that are frequently expanding into new locations or satellite offices should consider conducting asset register stocktakes immediately prior to the opening of each new office site. If possible, they should also conduct at least one more stocktake prior to the start of the next fiscal year. Similarly, organisations that have experienced constant flux, asset additions, disposals & transfers or high employee turnover may temporarily need to increase the frequency of stocktakes until order is restored. Smaller businesses or those which experience minimal flux, asset updates, capital works or employee turnover may only need to conduct a stocktake once each year.
Be Strategic in the Scheduling of Stocktakes
The timing of a stocktake is important because the process must unfold as seamlessly as possible to prevent interruptions to regular business operations. Some companies prefer to halt the receipt or shipment of any inventory until a stocktake is completed. In these cases, it is wise to schedule asset register stocktakes during a slower time of the business year. Other companies find that it is helpful to schedule a stocktake at the start of the new fiscal and/or calendar year to ensure that the new year begins on an accurate note.
The Key to a Successful Stocktake: An Experienced Asset Management Firm
If you wish to maximise the outcomes of an asset register stocktake, you should consider enlisting the professional help of an experienced asset management firm. Ideally, you should choose a company like us! Reduxo possesses expertise in physical asset audits and a track record of success with the reconciliation of financial challenges.
Please contact us today to learn more about how an asset register stocktake or audit will benefit your business.