Fixed Asset Management Services

We will review the Fixed Asset Register maintained by the client and provide any necessary corrections or suggestions to management. Our team will ensure that the register includes all required details for effective asset management. We will cross-verify the asset locations mentioned in the register wherever possible, ensuring that management has proper control over the assets. Additionally, our team will physically verify the existence of the assets listed in the register and update the register accordingly, to the extent possible.

The team will be briefed on the process for raising a request for a replacement fixed asset, which will include a list of existing assets of the same type, the reason for the purchase, and the estimated cost of the requested asset. The division manager will prepare an analysis that includes the name and address of potential suppliers, a description of the items, their costs, payment terms, credit period, and a justification for the selection of the supplier.

The accounting of fixed assets will be closely supervised, ensuring the creation of ledgers for each asset class, accurate depreciation calculations, and proper accounting for asset acquisitions and disposals. The asset classes will include categories such as Furniture and Fixtures, Tools and Equipment, Computers/Software, Buildings, etc., depending on the nature of the business. The depreciation rate will be determined in consultation with management, considering factors such as the asset’s nature, usage, and replacement value analysis.

We will ensure that assets revalued by a qualified valuer are properly accounted for, with the appropriate allocation to the revaluation reserve. Additionally, we will verify the calculation of revised depreciation on these assets, ensuring that it is accurately recorded in accordance with the relevant standards.

We will ensure that capital work-in-progress (WIP) is transferred to the relevant asset category upon completion, with expenses properly classified and allocated. The total value of the asset will be re-computed to reflect its accurate value in the books. We will also cross-verify that expenses are directly related to the definition of fixed assets, with any unrelated expenses written off. Additionally, we will confirm the correct timing of asset transfers from WIP to ensure proper accounting.

We can assist clients in tagging fixed assets with unique barcodes or RFID tags, and ensure that the system is updated with the physical location details of each asset. Tagged assets will be cross-checked against the existing asset list, and any discrepancies will be identified and addressed. While there may be initial effort and cost involved in asset tagging, the long-term benefits are significant, as it helps prevent asset loss or theft and provides a complete asset trail for better tracking and accountability.

Our team will visit your premises to verify fixed assets, ensuring that the assets recorded in the books are physically present at the company’s location or under its custody. We will also evaluate the existing control procedures, compare them with industry best practices, conduct a gap analysis, and provide a report with recommendations for any necessary improvements.