Physical verification of fixed assets is a key priority for an organization, to ensure compliance, better asset management, and traceability of assets.
Every organization must ensure that they efficiently use the resources without much affecting the quality and quantity. This has been one of the topmost priorities for the finance and admin teams as they are the caretakers of resource management.
Physical asset verification is a time taking process, and it is mandatory for organizations to conduct an annual physical count of all the fixed assets to check for their depreciation, resale value, verifying the accuracy as there would be continuous addition and disposal of items regularly. Estimating the remaining utilization factor is something that is equally important to evaluate the life cycle of the particular product/ resource.
The conventional method of carrying out physical verification requires checking the assets against a printed list of assets, which is prone to errors, and misrepresentation.
Physical asset verification by Volition LLP
We recommend companies to carry out asset tagging which enables:
- Easy identification of assets
- Reduced time for physical verification
- Better control over breakdowns & damaged assets
- Efficient disposal of assets
- Accurate depreciation calculation
- Reduced maintenance, repairs, and operation (MRO) costs