Keeping physical files for each asset can become a drain on space and resources, while a spreadsheet can quickly grow cumbersome and out of control.  One way to maintain an organized and contained record of all your asset management data is to use a fixed asset register, which is built to house the information in an organized and searchable feature.    Thus allowing your fixed asset information to be organized without becoming a time consuming activity.

• Possess stringent, technically advanced security features
• Aid in compliance with GASB 34 requirements
• Generate comprehensive audit trails with details of actions performed by all users
• Calculate and retain depreciation for one book or multiple books, for any period or range of periods
• Run ‘what-if’ scenarios for future capital government expenditure and asset disposals

In addition to the features above, government organizations should confirm that the software is able to cater to all standard government requirements and accommodate agency –specific conditions.

By checking the details before updating the asset register, the user can become aware of any discrepancies.  For example:  The printer that was scanned in the finance department may need to be moved back to the administration department, so the suggested transfer event would then be processed.

 Once data has been updated, you can produce additional reports, thereby providing a comprehensive account of all the changes that have been made to the register for any further analysis that you require.

• The built-in basic asset register lacks the necessary functionality
• They do not meet group requirements
• There is no centralized system
• Lacks a cost effective fixed asset solution

Using a GL or ERP system requires that you must reconcile individual systems throughout your group, often leading to time consuming processes that open your organization to errors.  If your organization is still using a GL or ERP system for fixed assets, it may be time to consider switching to a specialist fixed asset management system.  

Find out more with our free Fixed Asset Management Evaluation Guide.

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

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 amortization (including infrastructure assets) and any items classified as “historical treasures”

Typical infrastructure assets include: roads/bridges, sidewalks, tunnels, sewers, and lighting systems.

GASB applies to the following government organizations:

• General governments
• Public benefit corporations
• Public school districts
• Public colleges and universities
• Public hospitals and healthcare providers
• Public retirements systems
• Public utilities

• 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 reporting and auditing.

Your evaluation should include reviewing how assets are currently dealt with (are you using spreadsheets or do you have a specialist fixed asset system), is there a clear assignment of responsibility, and is your current system providing all the information and security you need. 

 If your organization does not have any specialist fixed asset system and/or specific practices in place, it may be time to consider implementing one and train employees to ensure your 2012 fixed asset records are correct.

 Need help?  Request our Fixed Asset Management Evaluation Guide here.

 With access to complete asset reporting and forecasting abilities, you can plan for any range of accounting periods, thereby facilitating the production of accurate budgets for the immediate future year and for longer periods.  Running different “what if” scenarios will help you see the effect of deprecation charges or events entered against both individual asset and categories of assets in the register.

By ensuring the relationship of the assets is kept intact, you are maintaining an accurate asset register and are less likely to experience ghost assets or zombie assets when performing a physical audit.

 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 the accuracy of financial reports, causing re-reporting and ultimately impacting the bottom line.  Establishing the highest standard of depreciation accuracy and best practices in fixed asset management will pay off in savings.

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 control.  Finding the balance between the benefits associated with greater control versus the costs of auditing these additional items, is something for your organization to consider. 

Leased items should also be included in an audit.  Audit managers should determining whether the company leases equipment and if so, how they can be determined.  Accidently disposing or transferring fixed assets that belong to a lease company can lead to fines and penalties.

Leading analysts including the leaders from Gartner, Forrester and IDC agree that this model offers significant advantages for fast-paced start ups, SBMs and enterprises alike.  Today forward thinking business leaders are opting for hosted solutions such as cloud computing to take advantage of the best practices that it has to offer, namely; scalability, agility, automation, and resource sharing.

To find out more about how Real Asset Management can offer a hosted solution, email us at solution@realassetmgt.com

• All required information is gathered in a comprehensive consultation
• Services can cater to single and/or multiple asset registers
• Outsourcing an audit eliminates the possibility of compromising existing resources
• Upon completion, a validated list of records can be imported directly into an asset register, affording considerable time savings.

Once a complete audit is done, you will be able to upload all your asset records to your register and be ready to properly manage your fixed assets.

However, while Excel spreadsheets are not suited for proper fixed asset management, they can still be a useful tool in your workplace.  Because spreadsheets may still be used for easy modification of asset analysis codes, descriptions, notes and date fields, it is important that when you are considering a fixed asset management system, you ensure that it is compatible with Microsoft Excel.  This will allow data to be downloaded, amended and then uploaded simply and in a matter of seconds.

Finance teams – can instantly access asset analysis reports and can completely define reporting to meet corporate needs

IT Managers – can set up parent/child IT associations and a detailed IT equipment register to keep track of all items

Asset Accountants – save time with a single screen data entry that includes batch functionality and the register can be updated with automated asset tracking

Auditors – easy auditing review with a comprehensive user audit trail and a single screen for summary of all asset events.

With the use of handheld scanners and specialist software, just about anyone can complete an audit.  Because of the ease of the barcode system, the auditor does not specific knowledge about the fixed assets, such as names of equipment.  All of the information is stored on the barcode label, thereby allowing any employee to scan the label and mark the item as found. 

By removing the extensive time barrier and the need for a specific employee to conduct the audit, specialized fixed asset software and barcode labels have made it possible for you to afford to conduct several physical audits a year.

With the option to get the new solution up and running within just a few working days, organizations can rapidly meet corporate demands for improved fixed asset management, including the adoption of mobile asset recording via PDAs. With minimal up front expenditure, the improvement in asset accuracy combined with the reduction in manual overhead delivers a very quick return on investment (ROI). 

Of course, before any such buying decision can be made, CFOs need to understand exactly what is offered and should review hosted solutions’ security and services.

Organizations also need to consider how the business will access the system? One option is a dedicated Virtual Private Network (VPN), which would further reinforce the security level, but organizations must ensure the communications bandwidth will deliver the required performance.

Whatever route a business decides to explore, there is growing pressure on CFOs to at least try out the hosted model.  Yes, a large proportion of risk adverse CFOs may well be unwilling to opt for a major financials implementation as a first venture into the hosted model. But even if the global financial situation radically improves and IT suddenly receives a massive input of resources, the finance team should be at least considering the financial and speed benefits.  Many now agree that it is time to test the waters of cloud and hosted model computing.

Data centers have experience dealing with a wide scope of security policies and practices and have specific operating procedures for the management of the facility.  Some of the security basics you should review include:

1. Climate Control – a data center’s performance depends on the right environmental climate.  The premium data centers have a continuous circulation of cool, perfectly conditioned air to provide the ideal environment for servers, routers, and other equipment. Most facilities use a sophisticated heating, ventilating and air conditioning system with enough capacity to easily exceed its needs.
2. Fire Detection and Suppression – confirm that preventative measures are the first line of defense against fires.  Air quality should be monitored by devices installed above and below the floor.
3. Power Backup – electrical power is fed to a data center’s Uninterruptible Power System.  This provides clean power to all equipment in the rare event of a power failure. For extended power outages, data centers can run on power generators for additional backup.
4. Monitoring & Alerting – high performance systems monitor the performance and security of your bandwidth and network around the clock, providing performance information about network connectivity and traffic utilization, as well as the security of your bandwidth, network and systems.
5. Network Bandwidth – look for high speed Internet connectivity over a world-class TCP/IP network. 

 In contrast, the option to leverage a highly secure, hosted, third party solution that can be delivered within days, rather than months, is compelling. Add in the appeal of monthly or annual subscriptions rather than the huge upfront cost of a perpetual license, and the hosted model has clear financial and business value.

 Indeed, a hosted fixed asset register offers a raft of additional benefits. Automated upgrades ensure the software is always up to date – a key consideration for compliance requirements, particularly in relation to the latest IFRS and SORP regulations affecting  organizations; while the hosted model also ensures the upgrade process can be achieved without any disruption or dent in user productivity.

Furthermore, a hosted model provides access to the system from any location, allowing members of the finance team to run reports, analyze asset information and check depreciation at any time, further boosting productivity.

 It is, perhaps, understandable that a CFO may be unwilling to rush headlong into the cloud with a business critical application such as the core financial software. But there are other aspects of the financial portfolio that provide a fantastic opportunity for testing the viability of the hosted model.

 Those companies that opt for a hosted fixed asset register can rapidly discover the benefits of the cloud and prove the long term viability of the hosted model for the entire software portfolio.  Over the next two weeks on our blog, we will be exploring cloud computing and hosted solutions for your financial software.  If you’d like more information now, please email us at solution@realassetmgt.com

1. Gross Book Values (GBV) and Net Book Values (NBV) at a specific point in time
2. Exact number of items to be converted
3. The number of accounting books to be converted.

These figures will help ensure the quality of the data and prevent errors wherever possible.

1. Stock can be managed through a FIFO (first in, first out) system.  This will record all stock movements and re-ordering criteria and generate purchasing instructions for your team.
2. A CMMS can hold all maintenance history, costs, bill of materials, current work orders, meter readings and maintenance schedules
3. A breakdown analysis using standard reports can enable users to identify maintenance strategies for individual items of plant and equipment.
4. Organizations can reduce maintenance costs, operational downtime and paperwork, while increasing customer service levels and health and safety awareness.
5. Automated stock level alerts will assist in optimizing stock management policies.

Specialist software can help simplify your tax compliance by providing:

• Instant access to a comprehensive audit trail
• Reduction in financial and tax reporting errors
• Direction for accountants on how to properly depreciate assets to comply with the guidelines set forth by the IRS and Section 404 of the Sarbanes-Oxley Act.
• Access to all books within one database that conforms with all state-specific and federal tax rules
• The option for calculating Section 179 deductions
• Creation of the F4562 worksheet based on calculated Section 179 deductions.

• Allowance for the management and allocation of software licenses against inventory items
• Integration with asset tracking software
• Ability to associate inventory records with consumable stock items
• Condition reports can be stored against each inventory item, stating a condition code, date and any notes required for future reference and analysis
• Able to issue current condition reports to assist with planning for future replacements
• Enables detailed and up-to-date records of IT equipment and associated software licenses to be held in one centralized database
• Ability to link documents such as letters, emails, purchase orders, invoices, certificates and contracts to be linked to inventory items

When reviewing new financial software, you should always perform a risk analysis on each supplier’s plan.  It is advisable to allow for glitches so that deadlines can still be met on time. 

High Risk Factors:

• Any bespoke development on the critical path
• Any deliverable that is not accurately defined
• Any time schedule that cannot be met by a supplier
• Software that has not been tested

Medium Risk Factors:

• Modified development, not critical to live operation
• Data conversion or data collection
• Hardware installations or upgrades
• Software installation and testing
• Sub-contracted resources
• Third party supplier involvement 

Low Risk Factors:

• Consultancy
• Training
• Auditing
• Technical support

Nominate a responsible project manager who will mitigate risks by allowing for unforeseen issues.  Avoid  changes in internal conditions by making your decision and placing an order soon after the evaluation stages are complete.  For more information about evaluating software, request our free fixed asset management evaluation guide.

Using a project control tool, plans can be funded by single or multiple budgets, allowing many different expenditure types to be categorized.   The construction of Work-in-Progress (WIP) assets, also known as Construction-in-Progress (CIP), can be enabled thereby allowing later transfer into your asset register.

A specialized tool that helps control budgets and integrates with an asset register can help you gain complete control of your projects, whether large or small.

A specialist lessee asset accounting system will enable an organization to:

• Report on future liabilities over a  1, 2 and 5 year period.
• Store finance leases and associated payment schedules.
• Split all “liability” payments into capital repayment and finance change (interest).   
• Reschedule leases (extending /reducing the lease length or changing payment amounts during the lease life).  
• Store lease agreement documents and associate this with the lease items when linked with document management software.
• Report on codes by configuring users codes for locations, type, supplier, department etc.

The answer to this question is pretty easy.  When you add a new user to the system, the software just needs to know what function that new user will perform.  So either the new user needs to be a Superuser or part of a User Group. 

You can add the new user as a Superuser under Options > User Security > User Password Access.  On the bottom left side of that screen, you should see a few options under “Security.”  Click EDIT on your controller, then tick the Superuser box and click SAVE and you are done.

To assign the new user to a User Group, go to the same Options > User Security > User Password Access screen.  Then go to the “User Groups” tag and click ADD on your controller.  Click on the drop down under User Group and assign them to one of the User Groups you have added to the system and then click SAVE.

If you don’t have User Groups set up, you may do so under Options > User Security > User Group Access.  Click ADD on your controller and give your User Group a title and Description and click SAVE.  You’re all done!

One more hint- if you wish to change the various security settings for a particular User Group, you can adjust those under the Access Rights tab and give each user group View, Add, Edit, and/or Delete rights to each section of the software.

The practice not only helps with present records and accounting, but also for future planning.  Accurate information can help allow for machinery life cycle planning, maintenance and replacement.  It can also be of assistance when complying with regulatory obligations and corporate governance requirements.  When using easy and quick asset tracking software, the benefits of completing a physical audit far outweigh the time required to do so.

With less than 40% of assets on the register easily identified during a physical auditand an estimated 20% no longer in existence, organizations are hardly getting value for money on expensive insurance premiums.  Furthermore, poor asset description typically results in claims being challenged by insurance assessors.  Without detailed information, such as a serial number or barcode, and proof of location, why should an insurance company pay out?  Make sure that your asset register, upon which your insurance premiums are based, is up to date in order to get the best and most accurate insurance coverage.

The practice of conducting periodic physical audits can assist with managing an asset register and keeping track of fixed assets.  Physical audits are essential to clean up variances between where you think an asset may be and where it actually is located.  An audit will allow better control over assets and the ability to track and plan for equipment upgrades.  If the asset register is not kept up-to-date with the movement of assets, it can quickly become an obsolete tool.

Some expensed items are categorized as ‘portable and attractive’ and are therefore sometimes included in an audit. Identifying and controlling these items is an integral part of a risk management and internal control strategy. An organization needs to find the balance between the benefits associated with greater control verses the inevitable administrative costs.

After agreeing on the items to be audited, the next thing to decide is what details will be collected. Some organizations are solely interested in finding and verifying the items, while others will take the opportunity to gather additional data. While conducting the audit, it is also a good time to note the condition of assets. If other details haven’t been previously recorded, such as serial numbers, make, model, meter readings, color, room location, last serviced date, etc., then this is a good opportunity to collect this type of information. With this data, a standard asset register can be turned into a powerful enterprise asset management tool. Audit managers should determine whether the company leases equipment and, if so, how they can be identified. Accidently disposing or transferring assets that belong to a lease company can lead to undesirable fines.

Finally the audit location(s) need to be clearly defined. If an organization is in one building then this process is relatively easy, but if it has multiple locations then either the physical audit will have to be rolled out in stages or it will have to be completed by teams.

1. Planning – select a project coordinator who will be available to manage the whole project; review your current system and pinpoint its strengths and weaknesses to establish a ‘wish list’ for your new system; and identify your time lines.
2. Create your project timeline – include time for planning, background information research, in-depth analysis, implementation and post-implementation.
3. Gather background information – get as much information as possible on each system you are evaluating.  This should include customer service and rough initial quotes.
4. In-depth analysis – review all the information you gathered in detail, ask for client references and verify what type of technical support will be offered.
5. Implementation – define your project deliverables with the solutions provider; execute the installation which will involve data conversions/collection and data loading, testing and training; and upon completion of training, check that all items in the definition stage are complete.

• Elimination of up-front capital expenditure
• 100% uptime
• Uncompromised security
• Hassle free & reduction of internal maintenance and support costs
• Data is stored on dedicated servers
• Security for all information relating to your assets

Top 8 Reasons to Implement a Fixed Asset Register:

1. Comply with all the latest accounting regulations including IFRS, IAS, US GAAP, Sarbanes-Oxley and Bill 198.
2. Multi-book and multi-currency.
3. Carries out asset revaluations, asset splits, transfers, relifes and retirements.
4. Produces detailed analyses and reports quickly and easily.
5. Provides a complete audit trail.
6. Commitment accounting facility for capital project control.
7. Generate Section 179 charges and bonus depreciation for applicable assets.
8. Ability to interface with most 3rd party applications including General Ledger and ERP solutions.

• Automated physical inventories
• Barcode tagging
• Useful life determinations
• Insurable value determinations
• Market value determinations
• Original cost determinations
• Property insurance valuations

 All of the above information may  then be included in your fixed asset management system, allowing your business to have the most accurate information available for reporting and decision making.

The finance team gets a complete analysis of all lease obligations and contracts.  Also, they benefits from analysis of all repayment and interest expenditure, historical and future.

Your management accountant benefits from detailed schedules of all payments and from flexible schedule creation and maintenance.

The asset manager on your team will receive accurate logs of all assets attached to leases as well as benefit from easy maintenance of assets and their leases, and storage of lease inventory items not declared assets.

A lessee management tool will prove invaluable to all companies that incorporate a leasing policy for asset purchases or require better controls on asset rentals.

Real Asset Management has released a Depot4000 module to dramatically reduce this administration time to an average of 5 minutes per invoice or even less, saving $$$s in administration costs.  This module is being welcomed by customers as a crucial time saving tool.

Also by using this module, leasing companies no longer have to estimate accruals and wait up to 2-3 months for depots and vendors to send final invoices for verification.  An accurate calculation of costs per unit is always obtainable and information is ready to be exported to the accounts system.

By self billing and producing pro-forma invoicing, companies can anticipate costs more accurately and calculate precise accruals with ease.  Over time, users can build up operational data to be analysed such as cost per location, cost per customer, etc.

Depot4000 works as an add-on module to RAM’s core Rental4000 solution, designed to help container leasing companies of all sizes manage their daily business activities.

A remote solution allows organizations to:

• Create ad-hoc work orders for immediate completion and receive emergency job information on the spot without the need to return to the office
• Access an up-to-date list of work order schedules
• Remotely access maintenance history, costs, stock levels, meter readings and asset details
• Record signatures, digital images and labor used against work orders

Viewing work orders on portable, handheld technology allows employees to easily access needed information and make changes that can be fed directly into a computerized maintenance management system (CMMS).  This ensures both effective resource utilization and increased time-savings.  A handheld system allows users the freedom to manage all planned and preventative maintenance and asset tracking without having to return to the office to retrieve information or to print documentation.

Because most organizations meet their maintenance requirements through a combination of both in-house resources and external contractors, a facility that serves as a repository for all work order information associated with contracts can be very helpful.  The information kept should include date of initiation, date of completion, costs, contract codes and descriptions.

1. It doesn’t meet group requirements
2. New workload requires changes to current e-business solutions
3. There is no centralized system
4. You must reconcile individual systems throughout your group
5. Lacks a cost effect fixed asset solution
6. Built-in basic asset register lacks the necessary functionality

If your organization is experience all or any of the above 6 issues, it may be time to consider a more robust fixed asset management system.   

To evaluate your current system further, request our Fixed Asset Management Evaluation Guide.

Because forecasting software is able to analyze the effect of depreciation charges against individual assets and asset groups, it can help the finance team make decisions about fixed assets and what is the best course of action, thus helping make your job easier.

1. Download the asset register to the scanner

2. Scan the location (if you have barcodes to designate room or building)

3. Scan the barcoded assets

4. Upload the audit results to your fixed asset register

With this easy 4 step process, your organization can verify the existence and location of individual assets and inventory items in a simple and quick fashion.  As a result, audits can be carried out more frequently to ensure your information is correct and up-to-date.  With asset tracking software and scanners, auditing is simply point and click.

By integrating your purchase order system with your fixed asset management system, you are removing one more step for your finance team and reducing the possibility of errors.

To avoid encountering overspending towards any project, you need to have complete control over cash flows and budgets.  A good project management system can automate the process and enable ‘Commitments’ (orders raised, internal charges) and ‘Spend’ (invoices received, journals) to be recorded against budgets for both capital and expense projects while also maintaining a detailed Work-in-Progress (WIP) asset register which can optionally transfer capitalized items across to the fixed asset register.

With everything in electronic format, the documents can be easily accessed by more than 1 person at once and you never have to worry about a file being left on someone’s desk or misfiled when returned.  An electronic storage system is also beneficial because documents can be filed in multiple folders if they are related to more than one project or fixed asset.    Plus, electronically stores files can include everything from word processed documents to spreadsheets, drawings, and photographs.

• All required information is gathered during an initial, comprehensive consultation
• Services cater to single and/or multiple asset registers
• Eliminates the possibility of compromising existing resources
• The auditing team can affix barcodes to all assets
• Upon completion, a validated list of records is imported directly into an asset register 

Outsourcing your auditing can afford considerable time savings and set you up to take advantage of a complete and accurate asset regsiter.  Should you be interested, please feel free to contact us, and we can put you in touch with some firms that provide these services.

A single centralized database allows your organization to manage and track the transfer of items between locations and business units.  It can also be used as a visual calendar for your team, showing maintenance history and scheduled works, overdue work orders, parts used/required, quantities, dates, meter readings and labor costs.  Having all the information about your equipment readily available can help decrease down times, defects, and confusion about maintenance schedules. 

In addition to the operational advantages, a maintenance management system will also help save money.  Many organizations have experienced a 20% maintenance budget saving, a 17% stock and part holdings reduction and a 19% increase in equipment life.

• Capability, customization and technical support are limited
• It is slow and clumsy to operate and/or to process information
• It has a poor reporting facility or it is difficult to extract accurate data
• You are unable to run it on company specific platforms or servers

If you are experiencing any of the problems above your system may be a risk to proper fixed asset management and auditors may insist that a more reliable system replace it.

Auditors must ensure that the accounts they are auditing comply with accounting standards such as the Generally Accepted Accounting Principles (GAAP) framework, International Financial Reporting Standards (IFRS), the relevant Statement of Recommended Practice (SORP)  and component accounting requirements.

For this process to run smoothly, an efficient and compliant asset management register is recommended to ensure all the company assets are accounted for in accordance with the relevant requirements. 

Auditors rely on the internal accounting systems and controls set up by the company, so it is the role of the CFO within each company to ensure they have reliable, compliant financial systems to enable auditors to gain a true reflection of the business accounts.

Financial details recorded against purchase orders, invoices, credit notes, journals and accruals can be automatically updated with a specialist system to ensure that key figures are always correct.  With the ability to store numerous descriptions, multiple analysis codes and detailed financial information against each entry, a project management system can provide a fully comprehensive solution in which transactions, including goods received are directly linked with projects and budgets.

1. Date based alerts – Highlighting warranties, insurance renewals, project end and lease expiration dates.

2. Event based alerts – when existing events have been edited/deleted; notification of data imports

3. Status based alerts – when a project status is changed to ‘complete’ or when a work order remains outstanding for more than x days.

4. Request based alerts – prompt where a second signature is required for authorization purposes.

A barcode system provides each asset or inventory item with a unique digital identifier which enables even identical units to be cataloged individually.  Eliminating the necessity for manual description checks, barcodes allows auditors to access all the information required to perform a full and comprehensive audit in just a fraction of the usual time. 

Barcode labels can be made to suite any environment or requirement and are available in a variety of materials such as vinyl, polyester and aluminum.  With the use of a scanner and tracking software, an audit can be completed in about 80% less time than if it were done manually with pen and pencil.  This savings leaves the finance team with more time to focus on other tasks.

When using a spreadsheet, you can’t be 100% confident in the integrity of your data.  One way to combat this is to consider a specialist system that has security features in place to effortlessly address the issue.  A specialist system can automate the fixed asset management process with data import capabilities and preset reports and forecasts. 

Automating your fixed asset management process and using a system with security features in place will reduce errors and increase your data integrity confidence.

The best way to do this would be using the Asset Split functionality.  You can split the item by percentage, quantity, or purchase cost to create what is essentially a separate asset. Then, once the split is complete, simply dispose of the item you do not want and you’re done! 

If you have any further questions about this process, please feel free to contact the Help Desk at 515-699-8564 or email us at RAMISupport@realassetmgt.com

1. Agree on the data standards – organizations should determine what assets are going to be included in the audit.  Are you going to include items based on your capital asset policy?  Or also include expensed items which fall below the capitalization threshold?
2. Review and consolidate the data – before starting an audit, an organization needs to compile a list (or pull a report) of all the items it thinks it has.  Once this is consolidated in a simple lists that removes any duplicates and includes information needed such as asset reference, description and location, you’re ready for step 3.
3. Determine your method – it’s time to consider if you are going to conduct your audit using pencil and paper, which can be very time consuming, or use a tracking system.  If you have implemented a fixed asset tracking system complete with barcodes or RFID tags, your audit will take 80% less time than a manual audit.
4. Analyze the results – now that the audit is complete, review the data and reconcile your findings with the information you had prior to the audit.  All disposals, additions, and transfers of assets should be reported to the relevant managers and updated in your asset register.

To read more about physical audits, request our whitepaper The How & Why of Physical Audits.

• Historic cost
• Current cost
• Realizable value
• Present value

Historical costs are the original costs that are incurred in acquiring assets or paying for expenses and they can be verified from source documents such as bank statements, receipts, invoices, and statements from suppliers. Historic costs also apply to liabilities and evidence can be corroborated from documents such as loan documents, leases, or hire purchase agreements.

Current cost is the amount that a business would have to pay to acquire an equivalent asset and it is mainly used in management accounts to underpin planning and control decisions rather than in financial or statutory accounts.”

A comprehensive asset management system can enable businesses to ensure an objective measurement of value for historic cost and use current cost analysis to deal with inflationary effects upon assets because the use of historical values may distort the business’ current financial affairs.

The University of Hawaii study findings include: 

• Spreadsheets contain errors in 1% or more of all formula cells
• Every past study reviewed by the team showed errors were always found in audited spreadsheets
• Errors in spreadsheets are consistent with data on human error rates from other work domains (Humans doing simple mechanical tasks make undetected errors in about 0.5% of all actions.  For complex logical activities, the rate rises to about 5%) 

As the authors of the study note, part of the problem is not only the errors in a cell in a spreadsheet, but how much that error is multiplied because of other cells that may rely on the information/formula from the incorrect cell. 

One way for organizations to avoid the repercussions of spreadsheet errors is to replace them with financial software.  To read more about how spreadsheets can be detrimental to your fixed asset management and how to fix the problem, request our whitepaper The 7 Sins of Spreadsheets.

1. Finance.

The finance team will have access to instant asset analysis reports and enjoy total user definition of reporting to meet corporate needs.

2. IT Managers

IT managers and their teams can set up parent/child IT associations and a detailed IT equipment register to better track and maintain all assets.

3. Asset Accountants

The asset accountants will save time and reduce user errors by using the single screen data entry with batch functionality.  They will also be able to implement automated asset tracking for register updates.

4.  Auditors

Auditors will have access to a comprehensive user audit trail and a single screen for a summary of all asset events, allowing for a clear picture of fixed asset management, thereby reducing time spent on the audit.

 In contrast, the option to leverage a highly secure, hosted third party solution that can be delivered within days, rather than months, is compelling. Add in the appeal of monthly or annual subscription rather than the huge upfront cost of a perpetual licence, and the hosted model has clear financial and business value. 

So why is it that the IT department rather than the finance team is driving the move to the cloud? Is this reticence based on educated mistrust and a justifiable decision not to hand over responsibility for critical financial data to a third party or a simple fear of the unknown?

• Calculate depreciation for federal and multi-state tax books and incorporates individual regulations for each of the 50 states
• Provide regular software updates  to accommodate changes in nationwide tax rules
• Assist with filing Form 4562 and produces a report summarizing GAAP to tax depreciation adjustments
• Generate Section 179 charges and bonus depreciation for each applicable asset
• Comply with all corporate governance regulations: Sarbanes-Oxley (SOX), IFRS, US/UK GAAP, GASB 34 and the Turnball guidance

Automating the above calculations and form information can reduce time invested in the process as well as reduce the possibility for human error.

One solution is a bar code or RFID tag system which provides each asset or inventory item with a unique digital identifier.  This allows all items, even identical units, to be cataloged individually.  Eliminating the necessity for manual description checks by using bar codes or RFID tags, helps auditors access all the information required to perform a full and comprehensive audit in just a fraction of the usual time.  What’s more, the use of an automated system significantly decreases the probability of human error that is inherent in the auditing process, thereby allowing your organization 100% accuracy.

The purpose of depreciation is to charge an element of the fixed assets annually to the profit and loss account to reflect the usage of the assets during the year.  Depreciation will continue to be charge to the profit loss account until the carrying value of the fixed assets have been fully depreciated.  That is, if the net book value of the fixed asset becomes zero.  Depreciation should cease once the net book value or carrying amount of a fixed asset becomes zero.

Another issue to solve when introducing software is that of asset transfers and disposals.  With a system that allows for event request authorization, an organization can expunge any manual processes in place that may require filling out forms that then have to travel from one department to another.  Inclusion of transfer/disposal authorization in the software will help to streamline processes and ensure that accuracy and accountability of an asset register.

If you organization is currently using spreadsheets as an asset register, this could be compounding the challenge of dealing with the volume of data.  With the amount of information available as your asset base grows, a spreadsheet will quickly become too large to properly manage everything.

If you have a specialist system in place or use the fixed asset module within a general ledger, it is important to review the functionality and decide whether it is still meeting your needs.  Older programs may not offer integration with other solutions that you require, such as asset tracking by bar code or RFID.  Or it may be that the basic asset register lacks the necessary functionality or reporting capabilities needed to address maintenance issues.

If an organization does have a specialist fixed asset system in place that has all the required functionality but continues to experience problems with asset management, it may be time to retrain employees and review current practices.

In addition to the ease of portability of one’s asset register, tablets can assist the finance team easily access depreciation schedules during planning meetings.  The information is right at their fingertips and several different scenarios can be run in order to help facilitate discussion and decision making.  Team members will no longer have to create a long list of follow up items, because they can be handled immediately and discussion can proceed rather than be rescheduled. 

Portability and immediate information are just two of the benefits of tablets to fixed asset management.  Can you think of others?   Share your ideas in the comments section below.

1. Finance team.  The finance team will benefit from instant budget/project analysis reports and complete sub-division and summary reports.

2. Asset Accountant.  The asset accountant can access analysis of spend by supplier and enjoy an automated process of managing budgets, projects and associated orders, invoices and credits.

3. Budget Manager.  The budget manager will experience a seamless integration with the fixed asset register and a simplified management of work-in-progress assets.

1. Provides IT Managers with a reliable tool to help keep track of valuable and portable items.
2. RFID makes data entry more efficient and reduces errors inherent in manual tracking.
3. Multiple items can be automatically scanned at once, which can save a significant amount of time.
4. No ‘line-of-site’ required; auditor don’t have to see the tag, they just have to be with-in its read range.  This means auditors don’t have to visually search for tag, or move / lift items to find the serial number or barcode tag.
5. Passive RFID labels are now very affordable, only costing slightly more than professionally printed barcode labels.

Whether used to compile an accurate inventory of assets or track the movements of assets in and around a given site, asset tracking solutions with RFID tags, can elimiate the need for direct scanning and reduce the time it takes to complete physical audits, making them a great selection for fixed asset managers.

1. Volume of Data – fixed assets can create data that continuously increases.  Throughout an asset’s lifetime, the amount of information about it will never decrease.  The file will continue to expand with information about depreciation, maintenance performed or required, whether it has moved departments, and so on.  If an organization does not have a proper system to record all of this information, it can quickly get out of control and disorganized.  
2. Tracking Assets – fixed assets may be transferred to another department or disposed of without the information making its way back to the accounting department, or to those that maintain the asset register.  If the asset register is not kept up-to-date with the movement of assets, it can quickly become an obsolete tool.  
3. Maintenance – fixed assets can often be quite costly and most are expected to last for several years.  In order to get the most out of an organization’s fixed assets, it is important that those items are maintained over time.  Without proper maintenance, assets may need to be replaced prior to the end of their average life expectancy or repaired more often than expected, thereby causing the company unforeseen costs.

• a particular service due date – never forget a preventative maintenance service again with an automated warning.
• an assets audit due date – ensure key, high value items are regularly audited.
• an event is added, edited or deleted – an event could be an addition, disposal, transfer, re-life, revaluation, split or enhancement.
• data is imported to maintain new asset or inventory utility – it’s useful to know when data is ready and waiting to be processed by the asset manager.

There are many more alerts available with a business activity monitoring tool which will help an organization never forget a critical asset date again. Alerts will help reduce labor by automating common tasks and each event can be tailored to an individual company.

A forecasting system that is part of your fixed asset management software will allow you to see the effect of depreciation charges, indexation, and capital charges or events entered against both individual assets and categories of assets in the register, allowing indexation to be applied.

The depreciation forecast allows acquisitions, disposals and relifes to be stated against groups of assets without requiring the user to specify precisely which assets will be affected.  An example would be a user budgeting for the acquisition of a new piece of medical equipment within a specified accounting period.  The effect on depreciation and capital charges will be associated with the appropriate asset type and a report produced based on that calculation.

Specialized forecasting systems will have the facility to carry out historical and current cost forecasting as well as forecasting by cost center/department.

After you synchronize the data back to the software, the next step is to go to Import/Export >  Physical Audit > Physical Audit Results to view the items that have been audited and make any changes to the fields of newly found assets.  Make any necessary changes and then select which assets (or all of them) you want to update the audit results for and click “Action.” 

Next, go to Physical Audit > Update Asset Register and browse for the items you want to update in the live register or just select all of your assets and click “Select” and then “Process.”  If there are assets that have not been audited, don’t worry, the system will just update them as not being audited anyway and nothing will change.

As previously mentioned, sometimes users need help finding their new/audited assets in the asset register as they cannot locate them.  Any new assets found during an audit go to a holding area which we call the maintain stage rather than going directly to the live register.  To find these assets go to Import/Export > Maintain New Asset.  Then you can add the new ones by ticking the box(es) next to the asset(s), right-clicking anywhere in the browser, and selecting “Add New Assets to Register.”  The last step is to click “Process” and you’re done.

As always, if you have any questions about this process, please contact the Real Asset Management Help Desk at 515-699-8564 or email us at RAMISupport@realassetmgt.com and we will be happy to assist!

1. A method to secure outside access to the database.  The parameters required to access the database should be stored in a registry, access to which can be controlled through standard security features.  The key parameters (database, user name and password) should be able to be encrypted within the registry using proprietary security encoding.
2. Database design integrity.  The software should utilize a relational database which provides relational integrity.  These databases should all include security controls that prohibit editing of the database in a way that is not fully audited.
3. Auditing and password security.  A controlled security environment employed by your software should determine access to individual options, features, forms, reports and processes.  In particular, you should be able to restrict whether each user can view, add, edit or delete records.

These three features with assist with internal control in relation to fixed assets under the SOX mandate, which incorporates all financial aspects of a company’s business, including revenue recognition, valuation of securities, provision of adequate reserves, and so on.

The Symbol MC55 incorporates a Microsoft Windows mobile operating system, a qwerty keyboard, built-in barcode scanner, a larger screen, and a durable case.  The Symbol MC75 is designed to withstand all environments and includes Microsoft Windows mobile operating system with a full qwerty keyboard and a built-in barcode scanner in a super-tough casing.  If you are looking for the most durable option available, the MC75 is the best choice. 

Handheld scanners are a great option to assist with asset tracking as they can help greatly reduce time spent checking asset numbers versus printed out lists and can protect against many of the common human errors that occur when performing physical audits.

Using this system saves organizations the physical space needed to store multiple hard files, which sometimes need to be stored in several locations for safe keeping.  Employees can instantly find documents without needing to put in requests to storage facilities or sift through boxes.  It also removes the need to make copies for multiple people who may need to simultaneously access the documents, such as auditors.  

Consider the benefits of document management for your organization:

• Removes the need for paper copies
• Instant access to documents  
• Documents include additional information such as author and date

Save paper and space this Earth Day by using a more comprehensive and earth friendly way to manage your documents.

In addition to the time needed for manual methods, there is also the labor cost to consider. Tracking assets successfully requires completing a regular physical audit. Physical audits may require an organization to bring in outside help for the day or to seek the assistance of employees from various departments to complete the task. Automated systems can ease the burden.

Implementation of a fixed asset management system helps organizations keep up with the latest depreciation calculations with just a few clicks rather than complicated spreadsheet formulas and also provide simple tracking with barcodes. Streamlining asset life processes is greatly simplified with the use of an automated system.

1. Sarbanes-Oxley:   This act requires all publicly traded firms and firms that may go public or be acquired by a public company to have a system of internal controls.  Much of the emphasis of Sarbanes-Oxley has been on revenue recognition and valuation of financial instruments. 
2. A System of Control: A good system of control over fixed assets, real estate, IT assets and machinery and equipment will help companies reduce both property taxes, and avoid unnecessary insurance expense.
3. Good Property Records: Accurate records, with periodic inventories of assets, assists companies in optimizing the acquisition of new assets by being able to transfer unused or infrequently used assets to areas of greater need.  Maintenance records associated with property records can aid in determining when it is cost effective to replace assets.

These three key elements of fixed asset management are a foundation for organizations to use in order to establish their best practices for controlling fixed assets.

• Advanced password protection that requires a valid combination of user name and password before giving access
• Ability to restrict access for individual users or to apply group access rules.
• Prompts to change password every 90 days
• Ability to state number of minutes of inactivity before user is automatically logged out of the program
• Time restrictions of when the system can be accessed (for example: a user has access to the system between 8am and 6pm on weekdays)

By limited access and maintaining tight controls over password protection, information can be better protected and you can feel more confident in the integrity of your organization’s data.

Why select a hosted solution?

1. Simplify Application Management – application, system and security patches/fixes are applied automatically for you.

2. Lower Upfront Capital Costs and Ongoing Operation Costs – there is no back-end server hardware to purchase, install, test, and launch, which lowers upfront costs.  With fixed charges, ongoing operating costs are manageable, predictable and affordable.

3. Focus on Core Competencies – entrusting the ongoing management and administration of your solution allows your organization to focus on its core mission, instead of managing production IT systems.

Designed for many types of organizations, hosted solutions can offer first-class data center facilities and technical expertise.  For more information about Real Asset Management’s hosted solutions, click here for your free information pack.

However, have you ever considered the cost your organization is enduring from using manual processes to complete your end of year accounts, such as:

1. Missed business opportunity – focusing more on getting the numbers than interpreting them can cost the business dearly.
2. Increased staff turnover – the extra workload and pressures can mean it is harder to hang onto employees.
3. Less accurate accounting – with little time and lots to do, the accounts are prone to errors.

By investing in a specialist asset register, which automatically calculates depreciation and capital charges on all your assets, your business can avoid the extra stress, time and inaccuracies caused by pressure exerted on accountants to manually process all asset accounting related reports.

If your organization is reviewing asset tracking technologies, you want to make sure you have the most helpful features, which include the ability to:

• Update the status of items on site and in real time using portable scanners.
• Upload as many data fields as required from the asset register to the hand-held unit.
• Input details such as make, model or serial number ideally displayed in a scrollable format on the hand-held unit.
• Allow assets and inventory items to be flagged as transferred, disposed of or missing.
• Utilize advanced search facilities allowing ‘rogue’ items to be quickly identified by a variety of criteria (e.g. serial number).
• Verify and check actions arising as a result of the audit prior to updating the register.
• Create transactional records for verified transfers and disposals automatically, with all updates and transactions recorded in a log for reporting purposes.

 By ensuring you have these key functionalities in place, your organization could realize potential savings of up to 70% on physical auditing costs and provide accurate cross-charging of information to other departments.

One of the more common questions we receive from clients is “How do I reverse a Disposal/Relife/Revaluation/Transfer?”

The great thing about all of the events in Series4000 is that they can all be reversed.  How, you may ask?  Well, you can simply delete the event.  For example, say you create a transfer record for an asset, moving it from the Chicago location to the Boston location.  Then you notice you needed to transfer it to a different location or not at all.

To delete the event:

1. Double-click on the transfer event on the Events tab of the Asset Details

2. Click on the “Delete” button once the Transfer event details appear

You’re Done!

However, there is one thing to keep in mind.  If you have run depreciation on the asset, then you will need to delete the Period Asset Costs for it before deleting your transfer event.  Otherwise, the Delete button will appear grayed out and you will not be able to perform the function.

If you have any further questions about this process, please feel free to contact the Help Desk at 515-699-8564 or email us at RAMISupport@realassetmgt.com.

Real Asset Management worked with King to show the capabilities of specialist fixed asset management systems.  King explains the flexibility of PC-based software and the ease of running reports, whether they are for standard or unanticipated needs.  He recommends for companies that are serious about upgrading their internal controls over fixed assets to acquire current specialist software.   With a system that is correct and in order, a business can stay far ahead of its competitors with straightforward business analysis, according to King.

A centralized system that managers can log into to update information enables schools to empower local responsibility for asset ownership while maintaining control over the asset estate.  Using barcoding, any changes to asset status can be rapidly recorded directly onto handheld devices, creating a complete audit trail.

With this insight, school districts can minimize the compliance overhead, from ensuring the right number of software licences have been purchased to ensuring assets are correctly disposed of to comply with both environmental and financial regulations, including IFRS.

The report addressed two questions.

1. “How long after the end of the fiscal year does it take governments to issue financial reports prepared in conformity with generally accepted accounting principles?”
2. “How does the passage of time between fiscal year-end and issuance of the financial report affect the usefulness of financial report information for decision-making?”

GASB found that the largest governments took an average of 6 months to issue their reports, while some of the small county governments took an average of 8 months.

Information that is received within or after 6 months was only found useful to 9% of municipal bond analysts.  However, if that information is received within 45 days, it is found very useful to 89%.   

There are several ways that governments can reduce the time between the end of the fiscal year and the release of their Annual Financial Reports and with the reduction in time, usefulness can increase 80 percentage points!  One way to reduce time is to replace asset registers currently housed on spreadsheets with a specialist fixed asset management system.  A GASB compliant specialist system will allow for users to instantly pull reports of all kinds, thereby reducing the overall analysis and time spent compiling AFRs. 

*Statics and information pulled from Governmental Accounting Standards Board report March 2011 “The Timeliness of Financial Reporting by State and Local Governments Compared with the Needs of Users.”  To read the entirety of the report visit http://www.michcpa.org/Content/Files/Public/Documents/DirectFile%20Links/GASB%20Research%20Brief.pdf

The good news is that school districts do not need to record every item in the stationery cupboard. The bad news is that they do need to track more than just the obvious high value items such as buildings and cars. At the most basic level, school districts should create an asset register that includes any item with a capital value over a set amount. However, many will also opt to include attractive items – that is, items that can be stolen, – such as digital cameras and projectors, that fall below this threshold. The result could be an asset register that includes many thousands of assets.

To meet the guidelines, school districts require an asset register with a description of the asset, its cost, location – such as room number or building, who is responsible for it, its life (time since purchase and expected lifespan), and whether there is any grant funding associated with it. It must also include asset maintenance information, including regular condition statements. However, there are other considerations beyond the creation of a robust asset register.  School districts must also consider new procedural requirements. Who will take responsibility for managing this asset register; how can the organization ensure asset information is kept up to date in order to meet disposal requirements as well as maximize the value of any capital expenditure?

The problem is that in some schools, the departments such as IT will have taken an autonomous approach to assets, using their own system to keep track of asset purchase, installation and disposal.  It is simpler to combine information from both finance and IT and to create a central, consolidated asset view that can support any new regulatory and business requirements that may arise.

If a specialist system has a built in vendor tariffs database to record all of the charges from external suppliers, it can save time when preparing a quotation and improving accuracy.  If this accuracy is improved by 10% at the quotation stage then this can result in a greater improvement in profitability.  To generate these plans manually for each job would take an average of one hour to complete.  Using a specialist monitoring system could therefore save you around $10,000 per 1000 jobs and can allow companies to increase their activity without recruiting extra staff.

Indeed, according to the Ernst & Young report, ‘just 20% of IT departments have put in place formal programs to manage software asset management’. From this it is clear that businesses still need to understand that gaining control over SAM can save significant sums – an important criteria for those with stringent IT budgets – and help organizations avoid the legal risks associated with under-purchasing.

From the powers accorded to the Federation Against Software Theft (FAST) to the importance of the ISO 19770 software asset management standards, the stakes are extremely high. Yet many organizations still fail to recognise that poor software licensing policies within the IT department could result in up to a 10-year jail term or a hefty fine.

Organizations cannot afford to rely on piecemeal policies and inadequate asset information. It is only by instigating rigorous asset acquisition and disposal policies and recording detailed information about the software loaded onto every machine, that any organisation can attain real control over the software asset and prevent over-purchase of software licences.

Companies could certainly be losing money due to a poor understanding of SAM, and never before has there been a more compelling argument to kick-start a proactive approach to improve internal SAM programs.

When you have the ability to store numerous descriptions, multiple analysis codes and detailed financial information against each entry, you have a fully comprehensive project management systemin which transactions, including goods received, are directed linked with projects and budgets.  Having a system that is fully integrated allows for costs to be controlled at every stage and for better overall project management.   This form of management also makes reporting simpler.

Assessment of environmental practices and reporting is certainly on the increase for businesses and generic statements about green strategies from procurement to recycling, carbon footprint to flexible working will not suffice in the long term: organizations are having to prove their commitment through information transparency and audit-able policies.

At the heart of such transparency will be consistent, detailed information about the life cycle of every fixed asset – from country of origin through maintenance schedules to final disposal.

Existing green policies and measuring carbon footprints assume a level of asset management far beyond that achieved by the majority of business. How many businesses can accurately identify the location of their equipment within the organization and confirm when it was purchased and from whom? By linking the asset register to a document management system, organizations can create the required audit trail, gaining valuable insight into their own assets and adapting to the green economy.

• Physical inventories
• Bar code tagging
• Market value determinations
• Property insurance valuations
• Original cost determinations
• Useful life determinations

Having all of this information available when you are ready to implement a fixed asset management system will not only allow for a smoother transition, but will also help ensure the validity of reports you run and disposition/acquisition decisions you make.  If you have complete records you are confident in, a valuation service may not be necessary for your organization.  But if you want to ensure your figures, then you may find the services helpful.

When you are creating your forecast, you want to be able to see the effect of depreciation charges or events that are entered against both individual fixed assets and the categories of assets in your register.  This simply can’t be done well with spreadsheets.  However, you may want to consider a fixed asset management system, which will allow the above.  Plus, a comprehensive system will allow for user-definable budget depreciation reports, forecast and live budget variance analyses, period budget analysis and detailed scenario comparison reports.  All of which should make future capital expenditure and disposal much easier to accurately predict. 

Interested in reading more about software to assist with forecasting?  click here.

With a specialized system, vital information (such as analysis codes, descriptions, acquisition and capitalization dates) can remain constant across all books, while details like asset life, depreciation rules and residual values can be book dependent.

Operating in multiple counties will most likely require that you have a multi-currency capability in your procedures for managing fixed assets.  A specialist system will allow each accounting book to be independently configured to meet international accounting standards.  Within the asset register, each office location should be able to record and report on its own assets in local currency.  User-defined exchange rates will allow the parent company to easily view and report on the same values in US Dollars.

Local governments still using spreadsheets to manage fixed assets will struggle with the increased complexity of the financial reporting required under the latest IFRS regulations as well as the sheer volume of asset records that will be created as a result of moving to component accounting.  A specialist asset register on the other hand, enables local government organizations to embrace such issues with confidence by, for example, providing the functionality to calculate historic and current cost depreciation and revaluation reserves at component level (also accounting for highways and infrastructure assets).

Importing revaluation data from spreadsheets will also save valuable time while avoiding errors associated with manual data entry.  Additionally, calculating accounting entries for revaluations and impairments and making the appropriate journal postings to the GL will ensure a seamless process.

With regards to managing leases under IFRS, a centralized database of finance and operating leased assets with associated payment schedules will help to ensure that you are meeting key financial requirements.

1. Inaccurate physical verification of assets can render the asset register unreliable
2. Depreciation could be allocated to the wrong company/cost center/department/division
3. Depreciation could be misstated resulting in over or under payment of taxes
4. Missing assets (potential theft problem) could go undetected
5. The audit trail of transferred assets can be lost
6. Assets could be under or over covered by insurance
7. Exposure to accounting audit write-up

Whether the assets are maintained on a spreadsheet or on a specialist fixed asset system, the credibility of an organization’s data will be in question if you have not taken the time to conduct a physical audit and verify that the data is correct.  Physical audits don’t have to be time consuming and the time and headaches that you can save yourself by not having to deal with the above problems, make audits very worthwhile.

Composing reports and forecasts can be a complicated and daunting process, especially if you are attempting to do it in a spreadsheet.  The data produced in these reports is too important to rely on spreadsheet information which more often than not contain inaccuracies.  Fixed asset management software can incorporate standard and customized reporting and forecasting templates.  These will ensure an easy way to extract and analyze asset data, enabling you to see your asset’s past, present, and future.

An easier way to maintain all the information you need in a secure environment is to use a specialist system for fixed asset management.  Each asset record contains a unique identifier and provides the user with the facility to incorporate  analysis codes such as:

• category
• cost center
• department
• company
• multiple description lines
• purchase cost
• purchase and capitalization dates
• asset life and depreciation rule
• quantity residual value
• grant value
• foreign currency amount

It’s important that this information is in a secure system because so many of an organization’s financial reports and dealings depend on it.  Spreadsheets unfortunately don’t offer the protection that this information mandates and quickly get out of hand with the sheer volume of information required.  With a specialist system everything is organized and secure making it easy to run reports and ensure you don’t get buried in deciphering asset identifiers and codes.

Cost savings are realized through:

• Reduction of time spent conducting a physical audit
• Ability for any single employee to conduct audit rather than requiring a team with knowledge of all assets/asset descriptions
• Ensuring a complete record and audit trail to prevent delays in future audits
• Reduction of human error

Physical audits are essential for the financial health of your organization, but that doesn’t mean they have to be time-consuming and costly.  With the technology available to organizations through the use of fixed asset tracking software and bar-code scanners, physical audits can now be completed faster and more accurately. 

To read more about physical audits request RAMI’s whitepaper, The Why & How of Physical Audits.