Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
26 views1 page

In Many Organization

This document discusses effective fixed asset management. It emphasizes the importance of starting with an accurate fixed asset inventory to establish a baseline and eliminate "ghost assets" that are no longer in use. It recommends conducting regular physical inventories of all assets across locations to centralize data. Assets should be appropriately tagged to avoid duplicate records or disposing of the wrong asset. Choosing the best asset inventory software can optimize management, prevent overpayments, maximize tax savings, and create efficiencies.

Uploaded by

diriba9163
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
26 views1 page

In Many Organization

This document discusses effective fixed asset management. It emphasizes the importance of starting with an accurate fixed asset inventory to establish a baseline and eliminate "ghost assets" that are no longer in use. It recommends conducting regular physical inventories of all assets across locations to centralize data. Assets should be appropriately tagged to avoid duplicate records or disposing of the wrong asset. Choosing the best asset inventory software can optimize management, prevent overpayments, maximize tax savings, and create efficiencies.

Uploaded by

diriba9163
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

In many organization, the savings potential of improved fixed asset management is often overlooked.

It’s difficult to find the time and tools to devote the attention to fixed assets that they deserve. Sound
fixed asset management can yield substantial tax savings in depreciation deductions. Conversely,
suboptimal fixed asset practices can threaten the accuracy of financial reports and negatively impact
organization performance. Establishing the highest standards in fixed asset management will pay off in
savings and create efficiency

Start with an accurate baseline

There is nothing more critical to effective management of fixed assets than beginning with an accurate
fixed asset inventory. Without it, no amount of added processes, controls, or correct calculations can
ensure the accuracy of fixed asset accounting. The only reliable way to verify and validate the fixed asset
information is to conduct a physical inventory.

Eliminate “ghost” assets

A “ghost” asset is property that is lost, stolen, or unusable but is still listed as an active fixed asset in the
system. If fixed assets on the books are ghost assets, a company might be overpaying taxes and
insurance on those assets.

Conduct physical asset inventories

In order to support optimal management, fixed assets should be inventoried on a regular basis using a
consistent method at every business location. Physical inventories can be conducted concurrently at
every location, referred to as “full inventory verification” or “wall-to-wall inventory.” Whether
conducting a wall-to-wall inventory or partial inventories, all fixed asset inventory data should be
centralized and reconciled against the existing data in the fixed asset accounting department. This
ensures that fixed asset reporting provides management with accurate assessments of the fixed asset
picture across the organization and ensures better compliance with regulatory requirements.

Tag assets appropriately

Labels are an important aspect of fixed asset management that is often overlooked. When a company
owns multiple fixed assets that are nearly identical, it can be very easy to make mistakes by creating
duplicate asset records or failing to dispose of the correct asset when identical assets are retired.
Choose the best asset inventory software

Optimized fixed asset management prevents overpayment of property taxes and insurance and reduces
the risk of regulatory noncompliance with legislation. It also maximizes tax savings through accurate
depreciation deductions and creates resource efficiencies by saving time for the accounting staff. A
properly installed fixed asset inventory system will eliminate the need to purchase redundant assets.

You might also like