It is important in India for ventures to handle Fixed Asset Register’s comprises key details. Mostly, the ventures with various branches and operating in legacy professional platforms are essential to employ this Register within the fresh ERP platform where they are shifted. The next challenge is to reconcile with the Books of Accounts, accompanied by tagging the entire Fixed Assets and its thorough record. Moreover, the following aspects make Fixed Assets register are essential in a company.
1) Corporate governance needs.
2) Correct depreciation calculations.
3) Not having audit trail and security.
4) Incapability to link 'parent/child' assets or handle asset division, batch disposals, etc.
5) Accessing multi-currency, multiple languages, or multiple book capabilities.
6) Inability to match past reporting and predicting needs.
7) Lost time on challenging tasks like data entry.
8) Lacking confidence in data integrity.
Fixed asset register primarily is accounting software for keeping and handling the fixed assets of a venture those generally include goods kept for producing goods or serving, but not for sale. A fixed asset register is simply a complete list of fixed assets.
It is challenging for any venture to maintain Fixed Assets without Fixed Assets Register. When not properly updated, it signals vulnerability of the FA’s and doesn’t provide a real image of FA in Balance Sheet. Additionally, it might turn in to reporting by Statutory or Internal Auditor in their report.
Fixed asset management is a way of accounting for tracking fixed assets for financial accounting (depreciation). Most companies even select to keep check of the whereabouts, amount, state, and maintenance details concerned with fixed assets meant for tax and insurance.
From an entirely functional perspective, getting a flawless asset register that exhibits location, state, and the official contact can be useful for ensuring assets are there and can be used when needed. But the way a venture uses its properties also holds various effects on the finances, through the very real costs of increased insurance premiums, asset taxes, and unemployed depreciation. These domains cannot be properly addressed without a solid fixed asset management solution. Organizations using outdated spreadsheets to handle a rigorously expanding asset register mostly struggle while fixing a range of issues around the accountability and traceability of their asset base.