Count Your Assets

In the course of business, we continually purchase new computers, printers, and other equipment that can last for several years. At the same time, with the increasingly fast obsolescence cycle, equipment is continually sold, donated or recycled. With this constant churning of assets it is easy to completely lose track of what we own and its state of repair.

Not knowing what you own can cause you problems on several fronts. Most importantly, assets can "walk away" if you don't keep proper track of them. Another concern is that you don't know if it's time for an asset to be maintained, repaired or replaced. Poorly maintained equipment is less productive and can cause a cash flow burden when unexpected replacements are required. Another consideration is that if your company needs to file an insurance claim, an asset list of what was damaged or destroyed is generally required for the claim.

At the same time, many government and other agencies require a listing of your fixed assets. These include income tax forms, personal property tax forms and insurance forms. Inaccurate information can cause you to pay too much or too little tax or you could find yourself in a situation where you are under or over insured.

The solution to this dilemma is to Count Your Assets! An annual fixed asset inventory usually takes a day or less and can be assigned to any staff member who is good with details. The process entails preparing a list of your fixed assets and then actually verifying that all of the assets still exist and are still in use. Documenting their state of repair is also a good idea and some organizations actually tag the fixed assets and then maintain the inventory list by tag number.

At a minimum, the fixed asset inventory listing should include a description of the equipment, its serial number, the employee using the equipment and the date of purchase. Common use equipment, such as copiers, should be assigned to the office manager or other administrative personnel. In addition to the fixed asset inventory listing, a good idea is to keep copies of fixed asset invoices is a separate file. That way missing details can be easily retrieved.

If you would like us to send you standardized fixed asset inventory forms, please send me an email and we will send them to you. Additionally, our client records probably already have fixed asset listings that can help you. Finally, if you would like us to help you with your fixed asset inventory, please give me a call and we will be happy to help.