Annual Fixed Asset Inventory

To budget or not to budget costs? That is the question for 2011.

This week our company is off and running to conduct another asset inventory. When I mentioned this to a friend of mine, they asked politely ,” Really? Companies have the money right now for an inventory of all their computers, servers and other equipment?” Even though it sounds so cliché, my answer was a firm and quick, “ They can’t afford not to!”

A lack of security solutions for jobsites and equipment costs contractors over $1.3 billion per year in lost assets and productivity. From appliances to equipment, if it’s portable it can be stolen.

Some of the top reasons for an organization to budget the cost for an asset inventory:

  1. Need to know where surplus is located in the organization – As companies downsize, the need to use equipment sitting idle becomes crucial. Distribution of fixed assets will reduce your companies expense ledger.
  2. Legacy inaccuracies become someone’s new problem – We hear all the time from clients that they are new or have just taken over the role of Fixed Assets, and the data is a mess! Ultimately, the person no longer responsible for them will not be reprimanded, the new person will! A clean and accurate database will make everyone’s job easier.
  3. Audits can produce penalization fines: Time and time again a customer relates to us that the reason they are spending the money on a 3rd party for the inventory service is due to a fine or penalization from an auditor. Sarbanes Oxely was designed to hold organization accountable.

Be a Boyscout – “ BE PREPARED”