2 Minutes Read

Are your Fixed Assets Accurate in your Year End Financial Statements?

Whitepaper: Connected Worker Strategies to Embrace Social Distancing in the COVID-19 Era - Challenges and Opportunities
Download Now

aaeaaqaaaaaaaaiyaaaajgnhzdawngq2ltqzmwetndq1os05nmjmltqwnmm3mwixymzlmgThere’s often an element of error and financial misstatement, fixed assets reconciliation accuracy needs the appropriate attention of every financial controller and Chief Financial Officer (CFO). Although several CFO’s believe that their fixed assets are represented accurately on their balance sheet, audits may yield a different answer.

Automated & periodic inventory of your fixed assets provide essential control and accuracy for the financial reporting of fixed assets. These best practices enhance proper accounting, valuation and financial reporting.

Increased Scrutiny Post-SOX era

Historically, executives have viewed fixed assets as having appropriate internal controls and low risk from a financial perspective. Now, in the post-SOX era and with broader IFRS adoption, fixed assets are often the biggest line item on the balance sheet and they are under greater scrutiny. Inferior records that contain ghost assets, grouped assets, vague descriptions, lack of physical inventory audit records and other data gaps, expose a business to risk in financial, tax, and regulatory compliance.

Common Challenges Reconciling Fixed Assets

Most organizations face significant challenges related to tracking the location, quantity, condition, maintenance and the depreciation status of their fixed assets. Typically fixed assets are recorded and maintained in either a spreadsheet, fixed asset register (FAR) or an ERP system like SAP. These records are then periodically verified through audit activities, such as physical inventory.

Financial misstatements are usually a result of company’s challenges and struggle with manual physical inventory processes globally. Manual paper based processes are extremely time consuming and cumbersome.

Solution: Streamline, Centralize & Automate Your Fixed Asset Physical Inventory & Reconciliation Process

aaeaaqaaaaaaaadeaaaajdjhymy4ztqzlwiynwetngq1ny1hmzlmlwm1oti5n2flm2eznq

A simple consumer grade mobile solution along with a fixed asset reconciliation scheduler and status monitoring capability can help 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.

A fixed asset reconciliation scheduler tool will allow your central asset management team to push fixed asset master records for reconciliation by location onto user’s mobile devices. The mobile device’s bar coding capability allows automation of fixed asset data such as location, status, check-in, check-outs and much more directly into your ERP system such as SAP. As a result, enterprises can witness the following business benefits by implementing such a solution:

  • Over 40% improvement in employee productivity.
  • Over 10-20% reduction in over payment of federal, state & property taxes.
  • Over 15% reduction in insurance premiums by proactively identifying retired assets.
  • Achieve 99% accuracy of fixed asset financial statements.
  • 100% of global fixed assets reconciled to meet audit & regulatory requirements.

Innovapptive offers a comprehensive fixed asset tracking, geo-coding and reconciliation solution. The solution is highly configurable without any code changes. In as little as 4 weeks, large enterprises have started to automate their reconciliation of fixed assets by bridging the gap between global fixed asset locations and a centralized back office. You can request a demo by clicking here.

Request a Demo

If you would like a demo of Innovapptive's portfolio of Native or Web based mobile solutions, 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 sales@innovapptive.com or you can reach a sales representative at (713) 275-1804.

COVID-19, Manufacturing Skills Gap and the Connected Worker
By 2050, the world population is estimated to grow from 7.6B to 9.6B. This growing population will boost consumer demand across all industries. From...
Read More
How Life Sciences Can Keep Production Going in the COVID-19 Pandemic and Help Employees Stay Safe from Infection
Life Sciences has gotten a lot of bad press in recent years. However, if there ever was a time when the world needs life sciences companies and the...
Read More
COVID-19 Response: 7 Advantages of Mobile Technology for Preventative Maintenance Optimization
The COVID-19 pandemic has brought the world economy almost to a standstill as all non-essential industries are closed to prevent the spread of the...
Read More
Reconfigurable COVID-19 Public Health Regulatory Checklists, Policies & Inspections to Promote Workplace Safety
COVID-19 knows no borders; neither does your business. As the world shuts down or works from home, you struggle to keep up production, even with the...
Read More
Does Your Mine Use Syclo or SAP Work Manager? Consider Innovapptive and mWorkOrder
Mining is a complex industry. For one, it almost always operates in remote areas far from infrastructure. Mines are found in the sides of mountains,...
Read More
UNICEF Uses Mobile Warehouses to Increase Aid Efforts, Keep Workers Safe during the COVID-19 Pandemic
UNICEF (short for United Nations International Children’s Emergency Fund) has been on the forefront of many disasters and crises since its founding...
Read More
10 Key Leadership Practices Employed During a Very Large, Prolonged Crisis Response
While organizational leadership is always important, it is critical during a crisis. Crisis leadership often requires practices that differ markedly...
Read More
3 Reasons Utilities Using Syclo or SAP Work Manager Should Consider Innovapptive’s mWorkOrder
Utilities are a crucial industry. People will always need electricity, natural gas, water, wastewater treatment, telephone service, cable TV and...
Read More
5 Reasons Why Mobile Work Orders Should Replace Paper-Based Processes – Especially in a Coronavirus World
Change is the only constant in industrialized societies. For example, just a few short weeks ago, the coronavirus was a minor story, taking place in...
Work Orders
Read More