What is Fixed Asset Management
Fixed asset management is the process of Capitalisation, accounting, tracking and maintaining an organization’s physical assets and equipment like Vehicles, IT assets, Furniture & Fixtures, Plant and machinery etc. Organizations face a significant challenge to track the location, quantity, condition, maintenance and depreciation status of their fixed assets at any point of time and at the end of FY to reflect correct value in Financial statement. Organisation also faces lot of problems, when assets move from one location to other or put to renovation /facelift without getting same recorded in the books.
How Important it is to Maintain the Fixed Assets?
Pro-Team helps clients manage their Fixed Asset & their Capitalization requirement as an end-to-end service covering the broad areas of capitalization, capturing asset details, ascertaining asset life cycle and maintenance requirement, asset numbering and tagging physical verification & periodic confirmation of their existence to the management. With help of automation and our differential PAN India approach, we make sure that you track, manage and comply your company fixed assets across all your group companies, entities, verticals and branches along with asset verification, tagging and reconciliation on regular basis.
As we all know in many of the industries, 40% of investment is done in fixed assets alone, and maintaining them has become a worrisome task. When a company manages its assets better and more effectively, it is more likely to maximize the value of its investments. In the absence of a fixed asset management system (FAMS), a company may experience various downfalls.
However, business owners can avoid these losses if fixed assets are precisely maintained in a systematic manner.
Advantages of Fixed Asset Tool:
- User Friendly Cloud based Access of Fixed asset data cost centre wise, region wise
- Quantitative control over FA data spread across various users/locations
- End to end control of assets from acquisition to retirement of assets
- Funds to make up the Working capital deficit is bit expensive
- Tracking and control of transfer and movement of assets with approval
- Have features of assets coding and barcode generation
- Depository of all documents related to Fixed assets like invoice, images, user instructions etc.
- Access to various customised report and meaningful interpretation of data.
Fixed Asset Verification, Tagging & Reconciliation?
For any company, knowing what assets are physically available as reflected in Balance sheet, their exact physical location, their users and the exact condition is a must not only from compliance perspective but also to ensure that assets are not misappropriated and reflect true and fair disclosure in financial statement. Owing to large number of users and geographically spread location and multiple divisions, Organizations lack accuracy, completeness, and uniformity of data when recording physical assets in a database.
Some of the advantages of Physical Asset verification:
- Ensures Physical existence of Assets as reflected in books
- Alerts management for any missing assets or unaccounted assets to take action plan
- Audit compliance as per CARO requirement
- Better Control and Accountability over assets
- Validate Fixed asset data for critical decision making
- Ensures accuracy of asset information for ERP implementation or migration and for other uses
Pro-TEAM Solution: A key for all the Fixed Assets related problems
- Pro-Team offers below services to its client for complete controls with Fixed Assets.
- Capitalization including Fixed
- Asset Register Asset Verification & Reconciliation at geographically spread locations
- Fixed Asset Movement Track and Control through software
- Fixed Asset Help Desk
- Fixed Asset Process Automation