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Audit process of Fixed Assets

Now a day’s most of the organizations whether they are Multinational’s or locally based invest in infrastructure. This investment of infrastructure is huge and involves a high cost. The definition of an infrastructure may vary from organization to organization. Infrastructure involves assets which are tangible as well as intangible. Let us classify some of the most common assets.

Tangible assets:               

  • Office Building
  • Computers
  • Furniture
  • Electrical equipments
  • Machinery
  • Air conditioners
  • Vehicles

Intangible assets:

  • Software
  • Trademarks
  • ISO Certifications
  • Licensing

We would take an example for further explanation; every organization now days have an access control system to control unauthorized access to its premises. Now this system will involve a tangible asset in form an access control machine and software to monitor and maintain records in form an intangible assets.

As we have seen in the example, such kind of assets involves high cost and maintenance as well. But tracking assets after been installed is more cumbersome task.  To make process of tracking assets an organization can make use of barcodes which can be attach to the assets with unique barcodes assigned to each assets for identification process to be simplified.

But how can it be done. For printing barcodes there are readily available barcode printers which can be used to design and print barcodes as needed or one can buy an barcode asset management software with this option inbuilt. Let us look at an example:

 

Example of a Sample Barcode:

Asset Name: Asset A

Asset Code: AA

Location: Mumbai

The barcode involves details like:

  • Asset Name: Asset name can be computer, printer or it can be specific as it is case in example.
  • Asset Code: Always assign unique code to your assets.
  • Location: Helps in tracking the origin location.
  • Barcode: In example it is 12345678 but it can be alphanumeric or hex numeric as required.

One can have more information and design barcodes as per requirement.

The above discussion was about Barcodes now let us have a look at Asset Audit process.

Asset Audit can be defined as process of tracking assets.

For tracking to be accurate first and foremost the organization needs to attach barcodes to all its assets and for auditing the assets it can use a barcode scanner which can read barcodes attach to the asset, gives current status of the assets.

Barcodes scanner are readily available in the market which can read the barcodes and this details from scanner can be exported in excel and imported into a fixed asset management software for knowing current status.

So what are the advantages?

  • Saves time
  • Error free
  • Cost involvement less
  • Conflict reduces internally in the teams
  • Accurate reporting

 

To conclude the discussion, would recommend buying barcode fixed asset management software with these inbuilt features. Thanks for reading.

 

Priyesh Joshi