Any enterprise carries out its current activities intending to make a profit. The owner of the business can want to see detailed analytics regularly, on which appropriate conclusions can be drawn.
Or for the current manager, the correct figures of the organization’s financial statements allow making competent management decisions. Therefore, carrying out verification of fixed assets by choosing fixed asset verification services plays a very important in an organization.
Fixed asset verification services help in checking whether the fixed assets listed in the balance sheet of the organization are present or not.
Physical verification of fixed assets is the procedure carried out to verify the existence and location of each of the fixed assets that a company owns.
In a machine-intensive industry, fixed assets are usually one of the most important items due to their monetary value and the care involved.
What items are considered in the verification of fixed assets?
Some of the data that must be considered in the verification of assets are the following:
- Location within the company: This is important since sometimes the assets of a company are loaned or moved from one place to another.
- Cost center
- A detailed description of the asset: The model, brand, serial number,
- Condition: A check to know if the asset is in a good condition or if it presents damages or replacements in parts.
- The person responsible or in charge of the asset
- Life: This will help to know the useful life of the asset and how long it will take to be replaced or receive maintenance.
- A current photograph of the fixed asset: Sometimes, when carrying out the verification, it is important to have updated photographs of the assets to consider their status.
What aspects are considered in the verification of fixed assets?
Everything counts as fixed assets
The person in charge of carrying out the verification of fixed assets will take into account 100% of the fixed assets in the company since this verification includes electronic devices, machinery, furniture, and the company’s intellectual property.
Mark verification with tags and labels
Marking with tags and labels is important as it will help identify the asset more quickly and easily thanks to the information that is stored.
External assets to the company
Identifying the assets that have been loaned or donated will help you have a better verification since these will not intervene in the accounting records.
Classification of the assets
The assets must be classified by brand, type of asset, work area, and characteristics, with this you will be able to have better control of the assets that your company has, and you will be able to identify them faster and more efficiently.
A well-conducted verification of fixed assets can facilitate any process of purchasing or upgrading equipment, reordering or relocating a company. It can also provide accurate information to help calculate asset depreciation. With this information, a company can reduce costs by knowing which assets still have a useful life.
Likewise, verification of assets allows detecting non-existent, defective assets that need repairs, relocated, or sold; In addition to being able to help reduce theft of assets, since their location and specific conditions would be known.
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.
Posted by:
CA Aman Aggarwal
AKGVG & Associates