Did you know that 45% of your capital asset data is likely inaccurate or incomplete?
Inaccurate data can mean audits, operational interruptions, compliance violations, or even paying insurance on assets that are no longer in your possession. This spring it is critical to conduct a proper “spring cleaning” of your assets to verify and update your data.
3 Tips for “Spring Cleaning” Your Assets:
1. Have a Capital Asset Policy in Place
One of the most critical issues we see with asset additions is the improper capitalization of acquisitions. Each organization should have a capital asset policy in place, and property accountants or any person involved in the purchasing function should be trained to code these expenditures correctly.
2. Before Implementing Software, Make Sure Your Data is Clean
Before you implement your asset management software, it is crucial to make sure that your data is clean and organized. This upfront process might be time-consuming, but we promise that it is worth it because it will save you time from having to go back through and sort all of your data once you have implemented the software.
3. Implement RFID Tagging
RFID tagging is a significant way to save time and automate keeping track of your assets. RFID can help with:
- Faster reading: The ability to scan multiple tags at once means more efficiency and faster reading.
- Minimize duplicates: RFID allows you to identify each individual item, helping you minimize scanning the same item twice.
- Greater accessibility: RFID tags don’t need to be within a line of sight to be able to scan them; you can scan RFID tags from up to about 8 feet. The longer RFID read ranges allow for fewer disruptions to operations, especially in research and healthcare environments.
- More accuracy: Traditional methods require manual reading, which is subject to human error. RFID relies on sophisticated technology.
- Better data leverage: RFID allows you to streamline your inventory process and tracking, and gives you access to better quality data. Better, enhanced data gives you more leverage when it comes to business decisions.
Not confident in your ability to do this yourself? We provide the field staff, familiar with your equipment and space, to physically verify and collect pertinent data points of all qualifying fixed assets.
We can help you:
- Optimize federal cost reimbursement recovery
- Provide savings and efficiencies for internal stakeholders
- Analyze fixed assets accounting classifications and useful lives
- Comply with GASB 34/35, GAAP, and UG Financial Accounting Standards
- Ensure consistent, compliant prospective stewardship of assets
- Implement RFID tagging for significant time savings