Fixed assets are tangible or intangible assets that are used in the production process and contribute to generate profit for the company.

Fixed assets can be depreciated and some examples includes:

  • Office Furniture
  • Machineries and building systems
  • Equipments
  • Buildings
  • Land

It is mandatory for every company to maintain a fixed asset register in which are detailed different information such as the value of each asset, depreciation schedule, maintenance activities, until its disposal.

Despite this, very often companies do not have a complete and precise knowledge of their assets, which will lead to significant losses due to:

– Penalties for non-compliance with accounting obligations;

– Reduction in the life cycle of building systems, assets and machinery due to incorrect management and lack of maintenance activity;

-Partial depreciation: in fact, many companies no longer have control over their assets and are unable to ensure proper depreciation, thus losing significant amounts of money that otherwise could be recovered.

Fixed asset: A proper management

STEP 1: The first step for an optimal asset management will be to make an accurate inventory that will allow to locate, label, track and acquire technical information of each asset.

STEP 2: Once the asset inventory activities have been completed, it will be necessary to carry out the accounting reconciliation activities in order to match each asset found on site with its code in the accounting records.

STEP 3: Keep data updated and efficiently manage assets through the support of an asset management software in order to realize movements, disposals, insertion of purchase orders and entry of new assets with related geolocation in the floor plan, labeling and technical data.

Do not hesitate to contact us for more information and find out how we can help you to enhance the value of your fixed assets as well as manage them properly.