Success in any business depends a lot on its buildings, machinery, information technology, and office equipment. Because Delhi NCR has so many competitive industries, managing fixed assets is a vital part of any company’s strategy. Still, firms in this region encounter numerous problems even as technology evolves. Throughout the industry, people still face poor asset tracking, obeying rules, accurate depreciation, and difficulty using centralized systems. Problems that arise here affect work efficiency and may result in problems with finances and audits, so companies in Delhi NCR consider fixed asset management a top priority. Now we will discuss the challenges faced by companies during fixed asset management in Delhi.
What challenges do companies face during fixed asset management in Delhi?
Lack of centralized asset tracking systems
It is common for many companies in Delhi NCR to use old ways, like spreadsheets or disconnected tools, to monitor their fixed assets. Such methods are difficult to recognize and provide the chance for people to make mistakes. Thus, organizations have to deal with assets that are marked as in use but are not, duplicated items in the system, and missing plans for maintenance schedules. In the NCR area where companies have operations in different places, it becomes difficult for them to control everything when asset visibility is missing. A strong and unified fixed asset management in Delhi is required to properly track assets, pass audits with ease, and ensure they are used in the best way in the company.
Inaccurate asset valuation and depreciation
Due to shifting laws such as the Companies Act, GST norms, and taxation laws, businesses in Delhi NCR are under tight regulatory checks. Records of fixed assets need to be in conformance with laws; a divergence would land them fines on statutory audits. Discrepancies in asset records may have legal consequences and damage to reputation, especially for listed and investor-backed companies. It is crucial to maintain proper registers, correctly document acquisitions and disposals, and ensure that reports are delivered promptly. Firms should have audit-ready asset management solutions in mind with increasing compliance complexity to remain ahead of the curve and avoid the financial and reputational damage that audit failure can bring.
Asset misplacement and theft
Because assets are often transferred among departments and branches, and especially in large institutions, offices, and hospitals in the region, misplacement is quite common. There may be stolen or forgotten assets in the financial statements since the system of checking assets and labeling them can be inaccurate. For a long time, many of these losses were not recognized. As a result of not monitoring and holding people responsible in real time, many devices become overpriced and are poorly designed. In Delhi NCR-based business organizations, employing technologies like automated check-in/out systems, barcode/RFID-based tagging, and regular asset audits can significantly minimize asset misplacement and unauthorized use.
Lack of trained staff or internal processes
Fixed asset management in Delhi issues cannot be resolved solely by technology; skilled workers and established procedures are just as crucial. Duties relating to fixed assets are commonly given to workers who do not have much experience or are seen as less important in many Delhi NCR businesses, mainly the SMEs. Therefore, data is not entered consistently, some depreciation is missed, documents for disposal are incorrect, and incorrect categories arise. Empirical data is of less value if it is not supported by Standard Operating Procedures. Companies have to set up uniform procedures for acquiring, marking, managing, and removing assets, and teaching staff how to use each one correctly, so their efficiency improves. With dedicated employees and the help of technology, the process of accounting becomes much more accurate and simpler during audits.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.