Fixed Asset Tracking – Devil is in the detail
One of our prospects, a plumbing and construction company, was having a significant challenge – there were lot of purchase indents for furniture and office assets that the accounts department went berserk. The management intervened. We were called in to solve through a common reference. We asked the usual questions, like the one I had mentioned in my earlier blog. The answers were not clear, as expected. There was no physical tracking, no papers (purchase orders / invoices) in order, and materials were transferred between the two locations and were not traceable. Since they were not traceable, a fresh purchase indent would come. The owner of this company was tech-savvy. Between a Samsung Galaxy, iPad and a notepad, he kept himself busy while listening to his team interacting with us, every now and then asking those ‘relevant’ questions. Our demo was customized to address their requirement – multi-location, non-tracked assets, and hence more capital purchase requests . We suggested them to take a step back – while our solution ( EasyTrack FATS) would solve their problem – the first issue was baselining.
- Identifying the fixed asset and asset types that need to be tracked
- Listing the physical locations
- Identifying asset custodians
- A physical search, and then one time tagging
- Reconciliation of paper
- Back of the envelope baseline capital asset valuation
- With the above, create an fixed asset baseline
Then when the data is put in the system, the base is set for handling further changes like asset movements, valuation, insurance, depreciation, maintenance status etc., When the exercise is on, one tends to discover lot of surprises – missing items in actual stock and in books. At verification and capitalization. This helps the customers discover the devils in the details, but once in a lifetime of their organization.