Fixed Asset Services
Fixed asset accounting is one of the Finance Department's most human and document intensive processes. Automation of Fixed Asset Accounting helps organizations significantly reduce costs and accelerate accounting and reporting process.
Management and reconciliations of fixed asset database is resource-intensive and requires thorough understanding and evaluation of asset records. We take care of all your asset records and inventory through professional fixed asset accounting services. Outsourcing fixed asset accounting to us ensures proper implementation of bar codes relating to the type of fixed asset.
We offer you end-to-end solutions for satisfying all your fixed assets accounting needs that include
- Physical Verification of Fixed Assets through electronic device
- Assets classifications based on location/ branch/ Asset User/ Category/ Cost Centre/ Custodian/ Department etc.,
- Allotment of Codes for each of Fixed Assets
- Accounting of Fixed Assets and maintenance of Fixed Assets Register separately under Companies Act (CARO) and Income-tax Act.
- Write-off/ Adjustment of obsolete/ discarded assets
- Preparation of Depreciation Statements under Companies Act and Income-tax Act
- AMC/ Insurance/ Warranty Expiry Report
- Allocation and Capitalization of expenses for Capital WIP if any
- Generation of reports on Fixed Assets
Reason for fixed asset audit
- To Know the internal control of the company towards fixed asset maintained
- Accountability of the fixed asset for both new and the additions made(whether deprecation on fixed asset has been properly charged and the expenses relating to the fixed asset have been properly booked) Account balance accuracy, Account Transaction validation, Asset valuation test, Asset classification test
- Whether the fixed asset are documented properly as per Accounting standard 1,5, 6 and 10 and as per other laws
- To know whether that management have physically verified the fixed asset from time to time
Company A (which comes under hotel sector) was seeking for the fixed Asset Audit of their Hotels reason being they had too many assets and they did not maintain a proper fixed asset register to keep a track of Fixed assets owned by them, they had approached us for availing the above service.
Our team of experts at B.C Shetty & Co., began verification with a technical plan based on the information generated from the company A and then we began the physical verification with the help of Asset tracking device which tracks information about the assets like Assets classifications/ location/ branch/ Asset User/ Category/ Cost Centre/ Custodian/ Department etc. Our team visited each part of the hotel and physically verified as per the fixed asset register provided to us and we gave each asset a code which made the job easy to track that asset.
After Physical verification we extracted all the data from the Asset tracking device and reconciled by which we matched the asset data with the help of old fixed assets register provided to us and through which we made a new and reliable fixed assets register with a proper Assets classifications/ location/ branch/ Asset User/ Category/ Cost Centre/ Custodian/ Department and also calculated the updated depreciation as per company act and income tax act.
Finally we drafted a Report on the jobs rendered which contained all the information regarding the missing assets, an asset not identified but was there in the old register, asset which needed regrouping, list of asset identified but not there in register and the actual value of the assets which will be submitted to the management of company A.