What is a Ghost Asset?

To get ready for Halloween, let me answer the question about ghosts.

You know those assets which are on your books but no longer exist, that haunt your every being [financials]?  Those are Ghost Assets.  One major reason to keep better track of your fixed assets, to get them off your books. 

Ghost assets that are not identified can cause a series of mishaps:

  • Loss of productivity due to the missing or unusable assets not being available when necessary
  • Capital budgets are rendered inadequate because management is unaware of critical assets needing replaced
  • Overpayments on Property Taxes AND Insurance

How do we find our ghosts?

Implement and conduct a physical inventory of your fixed assets!  Once you’ve collected all your information out in “the field”, bring it back and take it through the reconciliation process — it’s then that you will uncover your ghosts!

Happy fixed asset exorcising!

Fun Fact: on an average, 14% of companies fixed asset listings are ghosts.  Boo!

One thought on “What is a Ghost Asset?

  1. Pingback: Physical Fixed Asset Inventory / Audit: Quick Start « Crazy About Your ASSETS | b-l-o-g

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