This month, Tony’s Tip addresses basic asset management – and how a little planning now can save you big later.
January 4, 2019
BASIC ASSET MANAGEMENT
Assuming you are reporting your income and expenses on a calendar year, it is time that you start cleaning up your fixed asset list.
Define the problem before deciding on the solution:
- Can you find all of the assets on your fixed asset listing on the floor? If not, does it matter? Why or why not?
- Are similar type fixed assets described in similar fashion?
- When you have a disposal of an asset, are you able to dispose of the child assets as well?
- Will a review of the asset list with all knowledgeable personnel accomplish what you need done?
- How much time and effort do you want to spend on this project?
Finally, you have to ask yourself this question: What do I want to accomplish with a fixed asset inventory?
Begin the process by locating two or three asset inventory specialists and request bids and referrals before deciding which firm to use. Once you decide, allow yourself one week to have available knowledgeable personnel exclusively for the project. Remember, anything over a week for an asset inventory means one of two things: there were not enough asset specialists assigned to the project, or there was not enough time spent planning the project.
Don’t wait another year! The sooner that you begin on this path, the sooner you can realize all of the benefits.