Fixed Assets Verification Services
Due to constant changes in laws, it is important to maintain your fixed assets accurate record. Conducting the fixed assets physical verification helps meet regulatory and legal requirements and ensures accuracy in financial reporting. Without this, you can’t ensure the reliability and accuracy of fixed assets accounting. However, the task of fixed assets physical verification is time-consuming and challenging. At Sapient Services, we provide asset verification services to different businesses operating in Delhi NCR, India.
Our team physically inspects and verifies the location, condition, existence, and quantity of the fixed assets of an organization. We serve diverse industries ranging from healthcare to education, retail, and manufacturing.
What is Fixed Assets Verification?
Verification of fixed assets consists of an examination of related records and physical verification. The auditor should normally verify the records concerning the documentary evidence and evaluate internal controls. Physical verification of fixed assets is primarily the responsibility of the management.
The main objective for the audit is to conduct a compliance check of the assets which are mentioned in the Fixed Asset Register against those in existence. Other objectives include — ensuring fixed assets validity, including the fixed assets purchased and excluding those sold, values stated based on either cost less depreciation or revaluation, detailed assets in fixed asset schedule included in the balance sheet, or if the leased have the right of its ownership, and for relevant fixed assets shown in the financial statements to have a clear understanding of the financial position.
Why is Fixed Assets Verification Important?
Fixed assets verification comes with various benefits, including.
Ensuring Regulatory Compliance
Frequent verification helps ensure that your records are correct. With verified records, you can meet tax and audit requirements.
Fraud Prevention
Physical verification of fixed assets prevents accounting errors, losses, and fraud that could cost your company millions. The risk of accounting errors, loss, and fraud increases without regular physical verification.
Improved Asset Utilization
Verifying assets helps identify idle or underutilized assets. Companies can optimize asset utilization and redistribute resources effectively by understanding the condition and actual location of assets. This can lead to a reduction in unnecessary asset purchases and cost savings.
Accuracy in Financial Reporting
Up-to-date and correct asset information is important for generating financial statements. This leads to improved decision-making by investors and stakeholders.
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Challenges in Fixed Assets Physical Verification
These are the common fixed assets physical verification challenges.
Long Hectic Process
The fixed assets verification process is usually hectic and long, as in an organization, there are lots of assets. Apart from that, some of the assets of the organization are in other locations, and it can be difficult to verify each one of them. Moreover, all the documents are also rectified and checked.
Ghost Assets Identification
There are chances that some of the assets are lost, stolen, or misplaced. In such cases, these assets become ghost assets. It is important to identify ghost assets, as in an adverse situation, they can be lethal to your business. For those assets that you’re not even using, you may have to pay taxes.
Moreover, ghost assets may be considered as fraudulent activities by external auditors because of the over-evaluation of assets. Therefore, you need to eliminate ghost assets in the right way and remove them from all records and data.
No Systematic Approach
Without any systematic approach, physical verification and asset auditing can become more complicated. In fixed assets physical verification, it is one of the main challenges that is encountered, specifically when there is no strategic approach and work is done manually. There is no proper procedure for the verification and the fixed assets registry.
Our Fixed Assets Verification Services
Sapient Services Pvt. Ltd is a leading fixed asset verification company in Delhi, India. We offer a wide range of fixed asset verification services to various industries.
Our Service Areas
- Capitalization & Valuation.
- Physical Verification of fixed assets.
- Barcode numbering, including tag ID, value, location, type of product, and other important information.
- Software training and support.
- RFID tagging where needed.
- Maintaining the database and updating it on a regular basis with reports.
- Preparing and maintaining a fixed asset registry.
- Identifying & Verifying Physical assets that match the physical records to the book records.
- Calculating depreciation as per statutory requirements.
- Advising on capitalization of fixed assets in periodical intervals and inventory reconciliation.
- Tagging and barcoding fixed assets for easy identification of assets.
- Advising on implementing Internal control systems over the expenditure of fixed assets.
Why Choose Sapient Services?
- Knowledge of best practices and tools for fixed assets management. Similar engagements across different sectors with multiple clients.
- Dedicated team of sector, technical, and accounting professionals.
- Customised development of a tool for fixed assets management to fit your requirements.
- Competitive pricing without any hidden fees.
FREQUENTLY ASKED QUESTIONS (FAQ)
What is asset verification?
Asset verification is a systematic approach used for the examination of related records and physical verification.
What importance does asset verification hold for my business?
Asset verification helps ensure regulatory compliance, improve asset utilization, and accuracy in financial reporting.
What are the different types of assets?
Assets are of two types: fixed and current assets. They can also be intangible (like patents) or tangible (like machinery).
What are the benefits of fixed asset verification?
Verification of fixed assets reduces the risk of fraud, helps protect the financial stability of the company, and promotes good stewardship of assets.
What are the different ways to verify the assets?
Assets can be verified in two ways: aided and self-audit.
What are the challenges in fixed physical verification?
Common fixed physical verification challenges include inaccessible assets, regulatory pressure, depreciation tracking, limited resources, and improper identification.
How can you overcome fixed physical verification challenges?
You can overcome fixed physical verification challenges by conducting spot checks and periodic audits, investing in proper staff training, automating and regularly updating records, and leveraging technology for asset tracking.
What are the top tools for fixed physical verification?
The top tools for fixed physical verification include RFID Technology and Barcode Scanners, Cloud and Mobile Solutions, Asset Management Software, and IoT (Internet of Things) Devices.