How to Perform Fixed Asset Verification

Learn the importance of Fixed Asset Verification and how it benefits your organization. Explore the methods, process, and advantages of verifying your fixed assets for accurate and compliant asset management. Enhance your business with Asset Infinity's automated software solutions.

1. HowtoPerformFixedAsset
Verification?
Changingcircumstancesandthesuddenadvancementininnovation,haveledtheworldtoa
lifefullofcomfort,whichatanygivenpointincludestakingchargeofallyourassetswiththe
clickofabutton.AssetManagementAutomatedSoftwareallowsuserstoeasilytrack,
manage,verify,andpullreportsontheirassets,amongotherthings.Inthisblog,wewill
defineFixedAssetVerificationandhowitbenefitsanorganisation.So,let'sgetstarted.
WhatdowemeanbyFixedAssets?
FixedAssetsarelong-livedassetsorproperty.Wedonoteasilytendtosellthemoffasthey
aretobeusedforthelongterm.FixedAssetsaregenerallytheoneswhichareusedfor
manufacturing(theproduct),inamanufacturingindustry.Forexample-Thetransportation
usedtodeliverthefinalproductsinamanufacturingindustry,ifownedbythemwouldbe
theirFixedAssets,thattheyboughttouseforalongperiodoftime.Thedepreciationthatis
inducedtotheAssetsistobenotedintheAssetManagementSoftwarewhichhelpstokeep
trackofalltheassetsandthentomanagethemsothattheorganizationcanbenefitfromit.
IfonecanidentifyallitsFixedAssetsthenextstepthatcomesistomakeaplanthatdeals
withthemanagementandtrackingofallthoseassets.Whichispossiblewiththehelpof
AutomatedAssetManagementSoftwarelikeAssetInfinity.

2. AssetVerification
AssetVerificationistheprocessofverifyingtheassets.Therearetwomethodsforverifying
theassets:
●AidedAudit:Athirdpartycancomeandverifyyourassetstoseeiftheyarepresent
ornot.(Aswellashowtheyare).
●Self-Audit:Aconfirmationformisprovidedtotheassetowner,whomustfillitoutand
verifythathehastheassetwithhim.
ThisFixedAssetVerificationprocessalsoassiststheorganisationinremovingallGhost
Assetsfromthesystem.ItwasnotpossiblewithExcelsheetsandalloftherudimentary
practices.
GhostAssets:Assetsthat,accordingtothebooks,theorganisationownsbutarenot
physicallypresent.Thisissimplymisinformation,asyoudonotknowwhetheryourAsset
existsornot.ThiscanbecontrolledwithAssetVerificationbecauseyouwillknowifthe
assetispresentornot.
Processoffixedassetverification
Asuccessfulfixedassetverificationisanimportantpartofrunninganybusiness.Itensures
thatallphysicalassetsarepreciselyaccountedforanduptodate,allowingyoutomake
educatedchoicesaboutthefutureofyourcompany.Tobegin,itisdeterminedbythemethod
ofFixedAssetVerificationusedbyyourorganisation(selforaidedverification).Ifthe
organisationselectsAidedVerification,anadvisorwillvisitthelocationwheretheassetsare
located.
UpdatingtheFixedAssetRegister
ThefirststepistokeeptheAssetRegisteruptodatebyaddinganyassetsthataremissing
fromthedata.Thedatamustbebasedonareal-timereportinorderfortheAssetstobe
matchedagainstdatathatistruetoitsnature.
DifferentiateVerifiable/non-verifiableAssets:Theadvisor'snextstepwillbetodifferentiate
theassetsbasedontheirabilitytobeverified.Someassets,suchasfurnitureandfixtures,
canbeverified,whileothers,suchasgoodwill,cannot.
PhysicalVerification
HethenverifiesalloftheassetstowardsthedataresentintheAssetRegisterortheone
providedtohim.Theadvisorwouldalsoconductaphysicalexaminationofallassetsto
determinetheircurrentcondition.

3. Findingtheerrors
Thenextstepistoidentifyanydiscrepancies,suchaslostassetsorassetsthatappear
twiceinthedata,oranyotherissue.IfthereareanyGhostAssets,heissupposedto
removethemallandmakethedataerror-free.
Reporting
Thepersonwillsuggestanynecessarychangesforrepairs,aswellasnoteanyadditional
recommendationsandmaintenanceplans,ifany.
WhilethePhysicalValidationProcessforFixedAssetsmaybeatime-consumingactivityfor
highasset-basedcompaniesforthefirsttime,itmayyieldtremendousresultsintermsof
controlledsurroundingsandefficientresourceallocation.
TheAdvantagesofFixedAssetVerification:
Fixedassetverificationentailsanexaminationofrelatedrecordsaswellasphysical
verification.Normally,theauditorshouldverifytherecordsusingdocumentaryevidenceand
anevaluationofinternalcontrols.Managementisprimarilyresponsibleforthephysical
verificationoffixedassets.
●Complianceandaccuracy
●Thereisnofraud
●FinancialStabilitywasputatrisk.
●Appropriateuseoffunds
Conclusion
TheuseofAssetManagementSoftwareallowsforphysicalassetverification.Asset
Verificationenablesanorganisationtoobtainaccurateinformationaboutallofitsassets.
Mobileapplicationscanalsobeusedforassetverification.Normally,theauditorshould
verifytherecordsusingdocumentaryevidenceandanevaluationofinternalcontrols.
ContactingAssetInfinitywillassistyouinquicklyverifyingallofyourFixedAssetsand
uncoveringallofthepositivepossibilitiesthatitcanbring.