A company or an association is equipped with a lot of assets. However, a lot of companies or organizations do not include any automated asset tracking software due to which they do not have any type of accurate information on their assets. It is because of this reason that a lot of assets often get misplaced or lost. Most organizations have asset books where they collect all the information regarding the assets but this manually managed asset information cannot keep all the information on track and the details get inaccurate. Here in this post, we will discuss the importance of asset verification and how to do it more efficiently.
How to avoid asset loss?
There are various ways through which you can avoid loss of assets. With the advancement of technology, there are a lot of new techniques that have emerged to track assets such as barcode QR, Radio frequency identification, Global Position System (GPS), Internet of Things (IoT), and many more.
All the asset tags carry a unique identification number available in the sticker form. The best way to protect your assets is to attach stickers to every asset so that they can be easily identified.
Also, the biggest benefit of an asset tag is that it will provide you with the asset location all the time. This is done through storing the unique identification number in the software and whenever the asset is scanned, it automatically identifies all the information related to it and makes asset verification pretty easy.
What is the need for Asset Verification?
There are various reasons why it is essential to verify your assets. Here, we have discussed the requirement for timely verification of your assets.
Accurate Asset Number
It is vital for you to know the accurate numbers in your company for the physical verification of assets. Various companies or associations assume that they can easily calculate asset numbers but in reality, this is not possible.
Small-scale businesses can sometimes calculate their asset numbers at their fingertips, but it is not possible for medium and large-scale industries. Companies usually have pretty expensive assets, therefore, it is very vital to keep track of your assets and conduct timely verification.
Avoid misplacement & theft of your assets
Time-to-time asset verification is vital to avoid asset misplacement or asset theft. This is also considered to be one of the major reasons why asset verification has started to receive a lot of importance with time.
Asset verification is more important for companies that send their expensive assets outside their location on a regular basis.
Locating your assets
Most of the assets in an organisation are very expensive and companies would face a big loss when these assets are not found. Therefore, it is vital to know the location of your assets and keep a check on them from time to time.
In several cases, it has been found that companies search for an asset at some place and often it is found at some distinct locations. Most asset verification is important because of inaccurate asset tracking.
Remove ghost asset existence
Ghost assets are very harmful to any type of business. Ghost assets are the term used for assets that do not exist physically but are mentioned in the asset accounts book. And it often results in the association paying taxes for those assets that are not even used or exist.
If ghost assets are found during an external audit your organisation might end up paying a huge penalty. The auditor can also make you assume that overvaluing your assets is not a good idea. Hence, it is vital to remove ghost assets as they can lead to the introduction of problems in the audit as well.
It is important to keep a check of all your assets from your account book in the right way. But in order to achieve this, associations will have to invest in automated software.
Once you are aware of asset locations, then all the information related to each asset can be maintained. It helps to keep compliance in the time of external audits. This is because, during the asset audit procedure, every asset is checked thoroughly along with its documents as well.
Therefore, asset verification is necessary to maintain compliance. Moreover, when you keep track of each of your assets, then you can easily maintain the proper record of your assets and reduce maintenance expenses as well.
Asset verification from time to time is essential not just to keep your assets protected but also to make your working staff more and more productive. And, the best way to protect your business is to conduct asset verification by hiring a trustworthy detective agency in Delhi to perform professional asset verification services. You can also make use of asset audit software that can be extremely helpful in physical verification of assets.