Reduce capital expenditure by investing in fixed asset management

Many organizations have made the transition to IFRS, with its associated implications for asset valuation, but have yet to fully recognize the administrative overhead and inaccuracy created by reliance upon spreadsheets.

The adoption of a fixed asset register will not only streamline year-end audits and reduce reliance on specific, skilled personnel but will also provide the detailed insight into corporate assets required to attain maximum asset utilization across the business.

Organizations across the country are imposing far tighter financial controls – and capital expenditure is being reduced to the bare minimum.  Coming so close on the heels of the significant expenditure and resource required to manage the transition from US GAAP to IFRS, it is tempting for the finance department to maintain increasing control.

However, over the past decade of prosperity, organizations have invested heavily in new assets and equipment.  Manufacturing lines have been replaced, state of the art IT equipment purchased and property portfolios extended.  Yet very few organizations have any real idea of where much of this asset base resides, whether it is being effectively utilized or whether it has been disposed of, despite still being depreciated on the balance sheet.

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