How an end to end Financial Fixed Asset Tracking Solution Improves accuracy of your year-end financial statements?
Fixed assets make up a significant portion of the Balance Sheet for any business and organization. Depending on the type of 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 assets tracking is essential for any organization regardless of its size.
No doubt, as part of the finance organization, you are 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.
The manual ways of fixed asset tracking are 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.
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 & 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.
If you don’t have an efficient Fixed Asset Tracking system, your company is likely haunted by ghost assets, vague descriptions, lack of physical inventory audit records and other data gaps. These all can take your business to risk in financial, regulatory compliance and affect your revenue, accounting books, and taxes. Without an accurate method of keeping track of these fixed assets, it would be very easy for a company to lose control over of them. This results in time lost in searching, reduced employees’ productivity due to unavailability of fixed assets and wasted much cost of replacing missing or ghost assets.
An easy-to-use consumer grade mobile solution along with a fixed asset reconciliation scheduler and status monitoring capability can help you automate the physical inventory & reconciliation process of your fixed assets. By integrating a mobile bar coding solution directly with SAP or any other back-end accounting system (online or offline mode) enterprises can centralize & automate their periodic fixed asset reconciliation.
Innovapptive offers a comprehensive fixed asset tracking, geocoding, and reconciliation Mobile Solution (mAssetTag). The Innovapptive mAssetTag solution has an incredible array of benefits, it’s is very easy to implement and use. The Solution offers an asset reconciliation, scheduling, and monitoring solution to significantly accelerate the physical inventory process which improves employee productivity and eliminates redundant processes, rework and reduce audit risk with direct data transfer. Innovapptive’s mAssetTag with RFID peripherals is a single solution to replace the paper-based as well as the complex process of completing the annual Fixed asset inventory and reconciliation. It also allows you to attach relevant documents, which can be easily linked to any asset record. Since mAssetTag is fully-configurable with our RACE™ – (Rapid App Configurator Engine )technology, you can fully customize the solution to integrate all your standard and custom fields, so you can control data entry with notes and images to clearly describe each asset record. Better still, The Solution integrates seamlessly with the SAP Fixed Asset Module, so your information is in a single database; eliminating double entry as well as ensuring your asset data is never out of sync due to departments not sharing information.
Companies implementing mAssetTag save a substantial amount of money, manpower resources and benefited in numerous ways including –
Financial benefits of using mAssetTag:
- 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
If you would like a demo of Innovapptive’s mAssetTag (Mobile Asset Tagging and Tracking) solution, please click on the link. Alternatively, if you would like to discuss with an Innovapptive solution expert, you can reach out to us by emailing us at firstname.lastname@example.org or you can reach a sales representative at (713) 275-1804.