Yes, we are at that time of the year again that causes business administrators everywhere to tremble in their comfortable heels or wingtips (depending on your preference). No, no, it’s nothing so benign as “bring your child to work day”, its fixed asset inventories – ya know – the counting and tracking of your fixed assets… and all that they entail that often strike fear in the hearts with unerring accuracy.
Everybody counts something: sheep, stars, carbs, calories, what you have. I and my team, count assets, lots and lots of assets, even the phantoms. When a fixed asset is lost, stolen, or deemed unusable but still listed as an active fixed asset, it becomes a ghost asset. Don’t call them Casper, they’re not that friendly. Ghost assets are a drain on your company’s time, energy, and ultimately your pocketbook. In fact, since I’m such a smarty pants… 65% of fixed asset data is incomplete, inaccurate, or altogether missing, while 10-30% of fixed assets are no longer even owned. 10% – 30%! It’s not a quantum leap in logic to then assume that a company might be overpaying taxes and insurance by about 30%… is it? Ouch. It is time to exorcise the demons and get these ghosts out of your house and off your books. And that’s only going to happen with a solid physical fixed asset inventory.
Benefits of Counting and Tracking Your Fixed Assets:
- Elimination of ghosts assets
- Minimization of taxes and insurance premiums
- Reconcile your findings against your balance sheet – start fresh n’ clean
- Finally automate your depreciation [I would strongly suggest Sage FAS] so you can obtain LAW ABIDING books
- After all is said and done – you actually KNOW what you have and WHERE it’s located
In the end… all your ducks are in a row, you have smiling and happy administrators, and finally, you can sleep well knowing that your fixed assets are under control. Good night and happy 2010!