Real Asset Management Blog

The core of any audit

At the core of any audit is the production of the report itself.  A list of all audit items must be produced.  It is helpful if this list allows the user to preview the details and suggested actions for each asset (a feature available in a specialist fixed asset tracking system). 

By checking the details before updating the asset register, the user can become aware of any discrepancies.  For example:  The…

The problem with using a GL or ERP for fixed asset management

Some organizations use a general ledger or enterprise resource planning systems for fixed asset management.  While it may work on a small scale, organizations often find that these systems are not robust enough to deal with all of the issues surrounding fixed asset management.  Problems that arise when using a GL or ERP include:

• The built-in basic asset register lacks the necessary functionality
• They do not meet group requirements
• There is no centralized…

The 5 benefits of a CMMS

A computerized maintenance management system (CMMS) can help your organization increase productivity and actively manage and report on all associated planned and un-planned maintenance.  By allowing users to better manage the maintenance of their fixed assets, the user enjoys the following benefits:

1. Reduced maintenance costs
2. Increased operational life of equipment
3. Reduced downtime
4. Increased customer service levels
5. Reduced paperwork

A GASB Refresher

The goal of GASB, the Governmental Accounting Standards Board, is to improve governmental accounting and financial reporting standards in state and local entities, resulting in more useful data to better guide public issuers, auditors and users of financial reports.

GASB 34, 35 and 51 requires that fixed asset records and intangible assets be maintained by public entities in a complete, accurate and detailed manner and that governments report all assets, depreciation and…

Information to include on each asset record

A comprehensive asset register can greatly assist in your fixed asset management.  To have the most complete asset record for each of your fixed assets, consider including the following information:

• Unique identifier
• Analysis codes (e.g. category, cost center, department, company)
• Multiple lines for descriptions
• Purchase costs
• Purchase and capitalization dates
• Asset life  and depreciation rule
• Quantity
• Residual value
• Grant value
• Foreign currency amount

 By including this information, you will have comprehensive records for your fixed assets and it will help facilitate easy…

Start 2012 off right – evaluate your current fixed asset management practices

As an organization grows, processes may be outgrown as well.   If your asset base has increased significantly in the past year or your organization has had changes in fiscal policy, you may want to review your asset management practices to ensure they are still practical and efficient for your workplace.

Your evaluation should include reviewing how assets are currently dealt with (are you using spreadsheets or do you have a specialist fixed…

Asset reporting & forecasting’s affect on budgets

If you have a specialist fixed asset register, you can utilize existing asset information to run “what if” scenarios for future capital expenditure and asset disposals.  From this information the accounting and finance teams can build any number of different strategic models, allowing them to present the most cost-effective and tax-efficient capital budgets.

 With access to complete asset reporting and forecasting abilities, you can plan for any range of accounting periods,…

Why linking parent/child assets is important

Establishing hierarchical relationships and dependencies can be essential to accurate fixed asset management.  An example of a parent/child relationship is the association between a computer and software license, where the computer is the ‘parent’ and the license assumes the role of ‘child’.  Since the software belongs on that computer it is important to link them together so any transfers or disposals that occur to the parent in a fixed asset…

Why trade your spreadsheets for a dedicated fixed asset management system?

There are many reasons why spreadsheets are not the solution for all business needs.  With so many potential causes of and opportunities for errors, companies should look for solutions that are designed for specific , specialized tasks to eliminate them and ensure sound financial tracking and reporting.

 The accurate management of fixed assets can lead to significant tax savings in depreciation deductions, while poor fixed asset management done with spreadsheets can negatively affect…

What assets should be included in an audit?

Prior to performing a physical audit, organizations need to determine which assets will be included.  Is it going to be solely based on the capital asset policy?  Or will you also include expensed items which fall below the capitalization threshold?

Some expensed items are categorized as ‘portable and attractive’ and are therefore sometimes included in an audit.  Identifying and controlling these items is an important part of risk management and internal…