FIXED ASSETS Physical Verification and Tagging

Offerings

Asset Auditing & Tagging

Follows Floor-Book &Book-Floor methods to achieve the Asset Audit outputs

FAR Creation

Creation of the New FAR with the info available with client. Which could help their final audit process

Invoice or Document Digitalization

Take control over all the document via digitizing all of the documents to the required formats

Inventory /Stock Verification

Verify and keep a track on the complete stock In’s & Out’s

SOP Creation

Take control over all the assets and inventory by creating business process or SOP

E-Invoicing

E-invoicing is a system in which B2B invoices and a few other documents are authenticated electronically by GSTN for further use on the common GST postal.

Asset & Inventory Audit TECHNIQUES

Physical Asset Verification can be done in a number of ways depending on organizational objectives, the nature of the assets, and their geographical distribution. It is, therefore, essential that the objectives of the physical asset verification project are clearly outlined from the start along with broader organizational buy-in. Two of thecommonly used

Methods are briefly discussed below.

1. BOOK – FLOOR
2. FLOOR – BOOK

BOOK – FLOOR

FA Record – Obtain the existing Fixed Asset Register from the Finance team.

Verify – Verfiy all the Tag all the assets assets from the while verifying record along with simultaneously the SPOC.

Tag – Tag all the assets while verifying simultaneously

Reports – Provide the required reports of Mapping assets to books.

FLOOR – BOOK

Verify – Ask for SPOC and verify all the assets that you can see on the floor.

Tag – Tag all the assets while verification.

Digitalize – Digitalize all the assets on day-day basis to the excel formats

Reports – Confirm all the assets depart wise by the HOD’s. Reconcile the assets to the record if any.

Physical Verification of Fixed Assets:

• Definition of Physical Verification of Fixed Assets
• Importance of Regular Physical Verification
• Overview of Tagging Fixed Assets with Barcode or QR Code

Definition:

Process of physically inspecting and verifying the existence, condition, and location of fixed assets.

Objectives:

Ensure accuracy of asset records, prevent loss or theft, and maintain compliance with regulatory requirements.

Frequency:

Typically conducted annually or semi-annually, depending on organizational policies and industry standards.

Importance of Regular Physical Verification:

01 Accuracy:

Helps identify discrepancies between recorded and actual asset quantities, values, and locations.

02 Compliance:

Ensures adherence to accounting standards and regulatory requirements for asset reporting and valuation.

03 Risk Mitigation:

Minimizes the risk of asset misappropriation, loss, or unauthorized disposal.

04 Asset Optimization:

Provides insights into underutilized or obsolete assets, enabling better decision-making for asset management.

Tagging Fixed Assets with Barcode or QR Code:

Definition: Process of affixing unique identifiers, such as barcode or QR code labels, to fixed assets for tracking and identification purposes.

Benefits: Facilitates rapid and accurate asset identification, streamlines inventory management processes, and enhances data accuracy.

Technologies: Utilizes barcode scanners, mobile devices, and asset management software for seamless tracking and monitoring.

Implementation Considerations: Factors to consider include label durability, readability, and compatibility with existing asset management systems.

Implementing Physical Verification and Tagging:

Establish Clear Procedures:

Define standardized procedures for conducting physical verification, tagging assets, and updating asset records.

Assign Responsibilities:

Designate responsible personnel or teams for coordinating and executing the verification and tagging processes.

Select Tagging Technology:

Choose appropriate tagging technology (barcode or QR code) based on organizational needs, budget, and infrastructure.

Train Personnel:

Provide training to employees involved in the verification and tagging process to ensure proper execution and adherence to protocols.

Document and Review:

Maintain detailed records of verification and tagging activities, and periodically review and update asset records as needed.

Challenges and Considerations:

Technology Integration:

Ensure compatibility and seamless integration of barcode or QR code tagging systems with existing asset management software.

Label Durability:

Select durable label materials and adhesives capable of withstanding various environmental conditions and asset usage.

Data Security:

Implement measures to safeguard sensitive asset information stored in barcode or QR code databases from unauthorized access or tampering.

Scalability:

Consider scalability and expansion requirements when selecting tagging solutions to accommodate future growth and asset additions.

Best Practices for Effective Tagging and Verification:

Standardize Labelling:

Adopt consistent labelling conventions and formats for barcode or QR code tags to facilitate uniform asset identification.

Conduct Regular Audits:

Schedule periodic audits and spot checks to verify the accuracy and completeness of asset records and tagging.

Leverage Mobile Technology:

Equip personnel with mobile devices equipped with barcode or QR code scanners for on-the-go asset tracking and verification.

Automate Processes:

Implement automation tools and workflows to streamline tagging, verification, and data capture processes, reducing manual errors and inefficiencies.

Monitor and Review:

Monitor asset tracking data and performance metrics regularly to identify areas for improvement and optimize asset management practices.