Asset data capture and why accurate asset data is Important
At risk from an inaccurate asset register? Capturing asset data via our mobility solutions provides you with a verified, accurate asset register that will facilitate better asset accountability while ensuring that an organisation’s good governance and regulatory compliance objectives are met. Asset-intensive organisations should treat asset data as an asset in its own right.
Asset data serves a greater purpose than just storage in an asset register—it transforms into insightful information for strategic decision-making. Accurate Enterprise Asset Management (EAM) data enables organisations to understand their assets, track their locations, analyse usage, and extract value. By maintaining precise asset data, organisations can leverage insights to gain a competitive edge, drive innovation, and fuel growth.
Asset data capture applications collect the information you require to bring greater insight into asset performance. This enables organisations to make informed decisions that deliver on their asset management strategy and planning objectives. The ultimate aim is for asset-rich organisations to realise the following benefits:
- Delivery of a single point of truth
- Improved asset efficiency
- Improved lifecycle performance
- Reduced maintenance and down-time costs
- Compliance with regulations and accreditations
- Improved workplace health and safety
- Better sustainability performance
What is asset auditing?
Asset audit software is used to perform a check that the assets that physically reside within your organisation, are registered in your asset management system. It is a process of visiting a location, recording the items found, and reconciling that information with the data in your asset register. This procedure keeps your asset data up-to-date.
But auditing assets should not be a manual process (spreadsheet checklist) as this can incur human errors. Ideally this comprehensive procedure to verify the existence, condition, and location of assets should be carried out using a mobile auditing app. This approach results in more successful audits, less errors and detailed asset insights.
What are the benefits of regular asset audits?
Asset auditing is essential for strategic asset management and achieving high operational efficiency. One of the key financial advantages of regular audits is the ability to maintain precise records of asset valuation and depreciation. Regular audits, following proper procedures and protocols, offer several benefits for a business, including:
- Finding assets: you never knew you had
- Flagging assets: in poor or faulty condition and take pictures for the maintenance team
- Better resource allocation: based on business needs, aiding strategic asset management
- Compliance with regulations: organisations especially in the government sector, must maintain assets in excellent condition
- Reduce the risk of penalties: By adhering to regulatory standards
- Enhanced risk management: Conducting physical audits uncovers anomalies, allowing businesses to address issues promptly and avoid operational risks
Regularly auditing your assets alerts you to any data issues in your database and serves as a means of ensuring data matches reality. Identifying underutilised, misplaced, or old assets, enabling better resource allocation. Routine audits empower your organisation to manage and track assets more effectively, contributing to cost savings and enhanced functional efficiency.
Asset audit software for accountability and compliance
Maintain accountability for a wide range of assets and equipment so you can be always certain about who has what and where with a complete audit trail of all movements, and history of transfer of custodianship. Periodic audits confirm location, assigned person, custodian, and condition. An audit outcome may be specified (e.g., audited, not found, unexpected along with follow-up actions (e.g., re-audit, move, repair).
- Create efficiencies within the workforce, updating records in the field via mobility solutions with Barcode, RFID scanning and ability to capture and record images.
- Asset audit software with offline functionality allows for continuation of work when connection is unavailable.
- Conduct quick scoped audits by location or asset class.
What if assets are not audited?
Lost Assets
A lost asset is an asset that has been lost, stolen or is no longer used but still appears on the organisation’s asset register (also referred to as ghost assets). Nearly every organisation has a problem with lost assets. The dangers of lost assets are:
- Inaccurate balance sheet, as fixed assets account for the bulk of an organisation’s investments a lost asset can directly influence the value of an organisation.
- Lost productivity, assets required for production or operations that are unusable or unable to be located.
- Added expenses, the organisation will continue to pay various taxes, insurances and even service contracts.
- Inaccurate capital expenditures.
Unregistered Assets
An unregistered asset remains active in the organisation but does not appear in the asset register. These assets often enter the organisation through mergers, acquisitions, or one-off purchases made outside standard procurement channels. The dangers of unregistered assets are:
- Inaccurate balance sheet, an organisation that has an extensive amount of unregistered assets will be sorely undervalued.
- Work, Health and Safety (WHS) liability, through no risk assessments against assets, no maintenance/inspections history.
- Insurance coverage, if the assets don’t appear on the books they will not be covered under the organisation’s insurance policy.
- Financial implications, not claiming tax or depreciation.
- Inaccurate Return On Assets (ROA) ratio.
Misunderstood Assets
A misunderstood asset is an asset that the organisation is incorrectly managing either operationally or financially. Typical examples of this would be a leased asset on which a maintenance budget is assigned or an asset that is being depreciated against the wrong asset class. The dangers to the organisation are:
- Added expenses, whether it is through depreciation losses, operational costs or insurance levies, incorrect classification of assets places an unnecessary financial burden on the organisation. This may lead to legal implications, if an organisation disposes of a leased asset assuming that they owned it. This will lead them to be liable for the replacement.
- Unwittingly forced into lease rollover, as assets cannot be identified at the time of lease contract maturity the organisation is forced to extend the lease.
Unutilised Assets
Unused assets continue to depreciate, creating negative financial impacts for the business. Organisations should dispose of these assets as soon as possible to minimise losses. Some of the implications of these assets are:
- Added expenses, the organisation will continue to pay various taxes, insurances and even service contracts.
- Loss of potential income through the sale of an asset or immediate tax write-off.
- Drag down Return On Assets (ROA) ratio.
What are the advantages of auditing assets?
Organisations that perform regular asset audits gain multiple essential advantages which lead to operational efficiency and security. Audits improve asset tracking and management which enables better resource utilisation across your entire asset base. Your organisation benefits through improved day-to-day operations.
A verified, accurate asset register enhances asset accountability while ensuring an organisation meets its governance and regulatory compliance objectives. Effective asset audit management identifies mismanaged assets, whether operationally or financially, and uncovers unused assets that are still being depreciated on the books.
Hardcat’s software solutions and auditing application is the product of years of real-world auditing experience, delivering the right tools to allow you to conduct consistent, accurate and efficient audits that collect and verify asset data across your enterprise.
