Avoid These 3 Problems With An Asset Register Stocktake

Problems occur with asset register stocktakes or audits every day and often this is because there is no efficient system in place or the time to complete the audit in a reasonable timeframe. There are tools and technologies that can be implemented to help avoid some of the most common problems.

Lost Assets

Audits are needed on a regular basis and when there are no definitive ways to take a stocktake, it can lead to lost assets. It may have been awhile since one was taken and therefore assets have moved, been retired into storage, or borrowed by another location. When everything is systematic and there are better processes in place, it can make it easier to identify where the assets are and what condition they are in. Try rolling audits.

Incorrect Counts

There's nothing more frustrating than getting an incorrect count. It may be as a result of not having a barcode or RFID to scan and therefore the counts are going to be off or the assets are misidentified. It's difficult to ensure different people count assets the same way every time and therefore a better system needs to be implemented.

 

Time is $$

Time is $$

Ineffective Registers

An asset register stocktake or audit needs to be the same regardless of who is conducting it, consistency is key. The problem is that different departments may be at different starting points and this can cause problems with reporting as well as from the operational versus finance standpoint. All of this can be eliminated with a stocktake that spans across the entire organisation in the shortest possible time. You can be sure that everyone is at the same starting point and that everyone receives updates when a a total stocktake or audit is taken.

Contact Reduxo now to learn how to improve your asset register stocktake or audit.

Just Did a Physical Asset Audit? Here are Three Reasons To Do Rolling Audits

Get the stamp of approval!

Get the stamp of approval!

You can't get the most out of your assets unless you know where they are, how they're being used, and what kind of condition they are in. Physical asset audits are an essential part of enterprise asset management, and the information in them must be up-to-date if your organisation is going to manage its assets effectively. Keep an eye out for these three events, which can throw your asset register off balance and require you to update your asset management information.

Additions to your asset base can be a good thing, but when managed incorrectly they can also cause serious problems. If an asset is acquired through an improper procurement channel, or if somebody along the line forgets to record its addition, then you might not be aware that it has been added to your inventory. By making sure to adhere to addition policies and processes and update your asset management information whenever items are added to your inventory, can avoid purchasing the same asset twice because of mistakes like these.

Disposals are another event that can throw your asset management data out of whack. Failure to properly track disposals can lead to an asset being unavailable because someone mistakenly thought it was still available. The resulting asset shortage can result in embarrassment as well as costly delays. You can be sure that assets are replaced after their disposal by updating your asset management information whenever an asset is disposed of.

Transfers of assets, especially between far apart work sites, are a third event which must be promptly and properly recorded. A large part of asset management is ensuring that assets are placed at sites where your organisation can get the most out of them. This is most effectively done when you know exactly which assets are at which site or in which department; it is very easy to skew this vital information by failing to record asset transfers promptly and accurately.

The best way to keep your organisation's physical asset management information up-to-date is to perform physical asset audits on a rolling basis. Not only is the audit process itself more cost-effective to conduct frequently rather than once every few years, but the data the audit yields will also be of higher quality and the basis of good asset management. Reduxo specialises in providing rolling physical asset audits; contact us to find out how we can make the process easier and more efficient for your company.

Make Sure Your Fixed Asset Stocktake or Verification Process is Effective

Tablet Man.jpg

In order to manage your company's assets effectively, you need to keep abreast of what they are, how they're being used, and how much value they have to the company.  As the march of time increases the value of some assets--like land and buildings  --it decreases the value of others--like plant and heavy equipment.  Designing sound fixed asset verification policies and executing them frequently is the key to making sure you always have accurate information about your company's assets.

One key to a good asset verification policy is an effective labelling system.  Barcoding technology has revolutionised the asset management process in recent years; although it has made asset stocktakes or verification easy in many ways, it has also made durable, highly visible labels more important than ever before. All the barcode labels on your assets should be printed on quality materials applicable to the environment, and make sure labels are adhered consistently and in easy sight of auditors .

Another key component of an asset verification policy is a system of streamlining which takes human error out of the equation whenever possible.  Even with the best computerised systems in place, fixed asset stocktakes are a labour intensive process.  Automating when possible and bringing in specialists to streamline the asset verification process is a great way to give you some much-needed peace of mind and allow your employees to continue to do their core jobs.  

A great asset verification procedure is not only accurate and streamlined, but can also  be carried out several times a year, we call this rolling fixed asset audits with the ability to capture additions, disposals and transfers.  With all the great asset management software available today, there is no reason for a business to put off fixed asset verification until the last second.  This process is important to keeping your company's bottom line healthy; the more often it is done, the simpler it is. 

Reduxo will be happy to help you streamline and improve your asset verification process.  Contact us to find out more about the particular tools and services that work best for your company's asset verification needs.  

Ongoing Rolling Fixed Asset Audits - The Answer

NY2014.jpg

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!