Fixed Asset Register Related Services
For the entities to operate, it is somewhat necessary for Companies to maintain Fixed Asset (FA) Register’s containing certain mandatory information. Often, Companies which are multi-location and working on legacy work platforms have the need to incorporate this Register into the new ERP platform to which they migrate.
In the absence of an updated FA Register, it is tough for any company to keep check over the Fixed Assets. If FA Register is not updated frequently for the addition and deletion during the year, it alert about the weak internal control over the FA’s and does not present the true and fair picture of FA in the Balance Sheet. Further, it may result into reporting by Statutory or Internal Auditor in their report.
Fixed asset management is an accounting process used to track fixed assets for the need of financial accounting (depreciation). Many companies also elect to track the whereabouts, quantity, condition and maintenance records relating to fixed assets for tax and insurance purposes.
The challenges in this aspect are:
- Reconciliation physical fixed assets with those appearing in Books of Accounts,
- Tagging of all Fixed Assets
- Review of capitalization policy as per the relevant provisions
- Depreciation calculation
- Computation of addition and disposal details
- Compilation of discarded and/or obsolete items list
- On time proper recording.
Hemani Associates help their client in provision of these services which support the client in focusing on other areas of the business.
We have on our panel the experts who can also help you in improvement of inventory management by provision of latest inventory management tools.