Ongoing Rolling Fixed Asset Audits - The Answer

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We are almost into the new year and business owners are thinking about physical inventory and how to prepare for the next six months. There are so many time consuming business related duties to eat up the work day and to exhaust the mind on and off the clock. Being alleviated from just a few of these duties and worry would be worth how much to you as a business owner?

With all that will be going on in the new year, is there also an asset audit in your near future? Do you know what you have? Did you receive the big tick from your auditors last year for your asset register?  It has been years since the last audit and you are not really sure how it will stack-up to your actual financial statement. Is there a possibility of invalid asset transactions, non-compliant asset valuation, and incorrect asset classification? Your businesses' assets are your bread and butter, wouldn't it be nice to have control and complete knowledge of your fixed assets?

Many questions have been introduced and the answer for the future of your business assets is ongoing rolling fixed asset audits. One huge expensive project every 2-3 years may not be the best way to go in today's fast paced, ever-changing business environment. Ongoing rolling fixed asset audits would be much more efficient and less expensive. It will provide you with much needed answers and take some of the worry out of business ownership allowing you to concentrate on core business.

There are many other benefits of ongoing fixed asset audits:

  • Additions and disposals are captured periodically.
  • Asset movement and transfers are recorded as they happen.
  • Always be able to pull up needed information that is up-to-date.
  • Plan and budget based on accurate data.
  • Clear your books of assets you no longer have, an advantage to tax paying entities.
  • Minimise Insurance premiums.
  • Utilise existing assets, reduce costs on new purchases.
  • Implement asset management plan.
  • Manage spares and reduce down time with an accurate inventory.

If you would like to find out more about ongoing fixed asset audits and take control of your fixed assets, we have the answer contact us.

And by the way, Happy New Year from the team at Reduxo, wishing everyone a successful and prosperous 2014.  We are certainly looking forward to a great year!

Does Your Organisation Have A Physical Asset Stocktake On The Horizon?

A Physical Asset Stocktake or Audit is about as fun as a root canal, but there are ways to make it a little less painful. Unfortunately, laughing gas or a beer are not a viable option in this case (although they would probably work). Whether you are preparing for a financial audit or making the switch to a new asset and maintenance management system, having an accurate account of your asset base will help ensure the success of your project. 

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Fortunately, there are safe and legal ways to make a physical asset stocktake less painful and actually enjoyable. Ok, maybe "enjoyable" is a bit of a strong word to use, but if you are in the midst of a physical asset audit or stocktake then being sure you get accurate reporting on asset data for such things as planning routine maintenance, upcoming repairs, and necessary replacements will also ultimately improve clarity in the budgeting process for your finance department too. Knowing you are doing the stocktake correctly the first time will give you peace of mind and make it a little less painful. Two root canals are worse than one. . .making sure you have excellent data input will ensure you only have to do the stocktake one time.

Another way to make a physical asset audit less painful (and optimise the integration and utilisation of your upgraded systems. . .if this is the reason for the audit) is to hire an expert to help with the complete process. An expert can help ensure that your physical asset audit is completed accurately and in a timely manner the first time because they have a great deal of experience conducting these audits. You are an expert at running your business and the physical asset audit expert is an expert at running their business.

Thirdly, you can save yourself some time and money by detailing the scope of your audit before the physical asset audit expert arrives at your facilities. You can begin by deciding what types of assets you want to audit, what data fields you wish to capture, and other basics. If your records and documentation are out of date or inadequately organised then even spending a little time working to improve this situation will help the expert immensely. Your expertise and knowledge of your facilities and assets will be extremely valuable during the process.

Finally, if you are conducting the physical asset stocktake for a financial audit then you can help your organisation by migrating this data you have collected to your asset and maintenance management system. This will give you the opportunity to ensure your operations and finance departments are properly aligned. Think of it as a teeth cleaning while you're getting that root canal. . .a little extra time and it will feel so good. Your boss or someone in the other department might even buy you a beer for the extra effort (after work of course).

Physical asset audits are a necessary part of business. Eliminating them just is not going to happen. However, improving your experience is possible with the right approach and expert assistance. Once you have found someone you like working with it makes the process better and better each time. Partnering with someone you like working with. . .now that can be enjoyable. If you are looking for a physical asset audit expert that you like working with then please contact us to see if we might be a great fit.