4 Ways a Mobile Fixed Asset Tracking Solution Improves Financial Statement Accuracy

Fixed assets make up a significant portion of the balance sheet for any business. Depending on the enterprise, fixed assets hold a significant section of the net worth captured on the year-end financial statement. Depending on the city and state, your enterprise needs to pay property taxes. Unfortunately, it is not wrong to say that many organizations overpay taxes, because of assets that no longer exist but they are still on the company’s records. Records, which aren’t properly maintained may lead to inaccurate financial reporting. It leads to a qualified audit opinion that can damage management’s credibility with shareholders, investors, and customers. Therefore, an efficient fixed asset tracking is essential for any organization regardless of its size.

Manual Fixed Asset Tracking is Just No Longer up to the Challenge

As part of the finance department, you’re maintaining your fixed assets by using your financial system i.e. Fixed Asset Register (FAR), spreadsheets or an ERP system like SAP and believing that assets are being maintained accurately. But yearly audits may yield a different answer. You are not alone, there are many organizations that face similar challenges. Though, manual asset tracking not only consumes more time, but also introduces numerous data errors. It cannot be scaled up when necessary.

Manual fixed asset tracking is proving antiquated now due to challenges involved in the process and recent technological push. It has proven to be a slow method as well as its lack of accuracy in fixed asset tracking and the ability to easily reconcile or report data are major drawbacks. However, during a periodical review, it is not uncommon to find duplicate asset entries across the records. This is usually as a result of the transfer or copy of asset information from one place to another. Moreover, to double-counting the same asset, inaccurate asset locations can have property tax implications.

What a Mobile Fixed Asset Tracking Solution Can Offer

To better understand the need for end-to-end fixed asset tracking solution, here are some benefits that impact your bottom line:

Accurate fixed asset management - With a consumer-grade mobile solution for fixed asset tracking, you can get the exact location of your company’s fixed assets with real-time reports. This will increase the accuracy of your asset management and help you avoid any unforeseen situation such as not having assets when your employees need them.

Increase operational efficiency - With an Asset Tracking solution, you can know, which asset is being used by whom on a day-to-day basis, details about assets that are not using by anyone, and previous history who used the asset lastly and more. The solution provides you the information, which is needed to increase the operational efficiency and helps you anticipate your company’s requirements by identifying trends in advance.

Reduce administrative costs - Having a Fixed Asset Tracking solution in place, your admin personnel can easily track down assets and reduce asset loss that will reduce administrative cost. You can free up enough administrative time, which you can assign personnel to other, revenue-generating duties.

Ensure accountability and reduce the misuse of assets - An efficient Fixed Asset Tracking solution is essential for companies that want to ensure accountability. Because it will help knowing where assets have been allocated, otherwise they could get lost in the system itself. This lowers the misuse of assets by employees and ensures that you get notified immediately when the loss is observed, it’s far easier to recover from that loss.

Innovapptive offers a comprehensive fixed asset tracking, geocoding, and reconciliation Mobile Solution called mAssetTag. mAssetTag is easy to implement and use. It offers asset reconciliation, scheduling, and monitoring to significantly accelerate the physical inventory process which improves employee productivity and eliminates redundant processes, rework and reduce audit risk with direct data transfer.

Companies implementing mAssetTag have saved money, time and resources. They’ve benefited in numerous ways, including:

• Reduced federal tax liabilities by writing off ghost assets.
• Lower personal property taxes, premium by retiring Fixed assets no longer in use.
• Increased efficiency of capital budgeting through more active reuse of fixed assets.
• Reduced risk and potential losses due to theft with quick and accurate audits.
• Provides better asset utilization, risk management & security management.