What is Fixed Assets Management?
Fixed assets are purchased for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment.
The management of fixed assets such as buildings, fixtures and machinery, which can not be converted to a fair cash value in a timely manner is a vital accounting process. Fixed assets are often managed through the use of asset tags, which are tracked through serial numbers or bar codes, for easier organization, and are filed for the purpose of accounting, maintenance and theft deterrence.
Here are some of the most common tracked fixed assets:
- Plant and equipment
- Fixtures and fittings
- Long term investment
- Vehicles and heavy equipments
Why is Fixed Assets Management important?
Fixed assets management is important for businesses. We have listed some good reasons to switch to a specialist asset management system.
Here are some more benefits of managing the fixed assets:
- Improved Capitalization Policy.
- Insight in to the life of the Assets (Companies Act Schedule II)
- IndAS Requirement – Component Accounting – Tax Planning
- Assurance on availability of Asset
- Control Mechanism to protect assets from any Embezzlement
- Eased out asset tracking.
- Accurate insurance premiums.
- Assigning accountability and responsibilities.
We specialise in providing fixed assets management services for clients across various sectors. We are working with companies with presence over the entire nation.
Here are some of our specialities:
- Experience in managing Multi location clients
- Working on large assignments within stringent timelines
- Ensuring quality standardization on assignments across India
- Delivering cost benefit for our clients
- Experience of various industries and managing work at various towns in over 20 states across India
- We build a long term relationship and continue to support as and when required
Scope of Work
- Update/Create FAR
- Physical verification of assets
- Tagging assets – RFID/Barcode
- Reconciling assets with the financial records
- Updating financial records basis reconciliation
- Updating records on FAM software
- Periodic verification and reconciliation
Features of FAM Software
- Assets with description, location, custodian can be added
- Unique bar code for each asset
- During addition the photo/bill of purchase can be scanned and uploaded in the software.
- Assigning custodian to individual assets
- Recording Insurance details with the individual assets
- Helps in the audit process
- Rate of depreciation can be changed any time with impact due to such change.
- Bar-coding can be done on destructible non erasable stickers/Aluminum sheets.