Ensuring that your company property is under control is vital when running a business. An asset audit checklist reviews all equipment, supplies, and resources owned by a company to guarantee that everything is accounted for – it is the perfect system for organizing your assets. This review is an essential process for managing fixed assets, tracking inventory, and preventing financial issues.
An asset is of utmost importance when considering the accurate value of your business. Tangible assets that a company owns are categorically classified into two categories, fixed assets, and current assets. For instance, fixed assets such as properties or equipment owned for over a year are significant to a company since they provide long-term value. Current assets, such as cash and accounts receivables, provide temporary value to a company as they can be converted into liquid cash money.
Listed below are things that should be included on an asset audit checklist to help guarantee that your company’s assets are accurately accounted for:
Physical Stock Counts
Take an equitable inventory of all supplies and make a precise calculation as to its worth. Physical counts and reviews must be performed for all products and in all locations. Additionally, some things may need adequate labeling.
Asset Tracking Program
Well-run companies use computer programs that assist in tracking assets. Asset tracking modernizes the process of inventory counts and eliminates manual accounting to increase productivity and reduce errors. With an asset tracking program, you can easily access all your notes and record keeping, learn which assets need maintenance, and see who has specific equipment assigned to them.
Serial Numbers and Identification Codes
Most assets are labeled with a unique serial number or identification code for tracking. All assigned locations should be able to promptly access this information. When identifying your equipment, be certain to label each item with an individual serial number or bar code.
Condition of Equipment
We live in a world where everything eventually wears out. Checking the state of machinery is crucial in ensuring that everything is functioning correctly. Evaluating the condition of equipment on an annual basis is ideal, to avoid breakdowns, productivity loss, and potential accidents that can lead to injuries.
Documentation Review
Important documents such as warranties, manufacturer manuals, contracts, and agreements should be assessed regularly. Documents must be kept up to date and located in one centralized location. When reviewing these documents, keep track of expiration dates for warranties or contracts, so that they can be replaced or rejuvenated if needed.
Classifying Assets
It is essential to classify assets, making it easier to track assets that need maintenance, which assets are under repair, and which assets need to be reviewed for an expended warranty period. It will be insightful to categorize assets into a specific group, allowing for more straightforward accessibility for new applicants as well.
Personnel
Personnel conducting an asset audit checklist should express an adequate amount of competence and exercise precisely when counting, labeling, and reviewing documents. Everyone must be attentive while physically taking inventory and open to proven advice when needed.
An asset audit checklist is a valuable and extremely vital component of managing your company’s assets. Nonetheless, it can also be time-consuming when performed with outdated procedures and manual accounting practices. One solution to ease the burden is to adopt computer-assisted asset tracking. This will guarantee that the contents of the audit are accurate—saving the company from wasting time and preventing financial errors.