Detailed services offered by Fixed assets verification firm

Posted @ 1/15/2017 4:38:53 AM by admin Under( Fixed assets verification)


AAA asset verification is a leading service provider of comprehensive physical verification of fixed assets. This exercise is also known as Fixed assets audit or asset verification exercise. The services provided at our firm, regarding fixed assets verification include -
 
- Building Fixed Asset Register
  A comprehensive Fixed Asset register (FAR) is a primary requirement for any organization. Apart from various regulatory and statutory requirements  for maintaining an up-to-date FAR, it is important from companies perspective too. Having information about the various assets, such as date of procurement, cost of acquisition, description, location, etc. helps in verifying the actual presence of the said asset on the ground as well as easier calculations form claiming deductions under Income Tax Laws as per Section 32 of the Income Tax Act.
  We at AAA help our clients build a complete Fixed Asset Register right from scratch if they dont have one yet, or help them streamline and update the register according to the latest standards if they already have one.
 
- Installing Fixed Asset Management System
  We as a fixed assets verification services provider have tied up with various Asset Management developers as their channel partners, so as to provide our clients with end to end customized solutions regarding their asset management requirements. We act as a link between our clients and the asset management system developers to install the required system with our client.
  Now how to choose the perfect system and the related customizations differ from one organization to another. This is where our two decades experience comes into immense use for our clients who leverage it to get the best fit for their organization. Practicality, efficiency and cost effectiveness are our guiding principles by which we provide the required solutions to our clients.
 
- Training client staff on using the Management system
  Once the desired Asset Management System is installed, we also provide technical training to the employees of our clients, guiding them through the entire working process of the various modules in the management system. This includes system testing and dummy entries being executed so that by the time we end their training, the clients employees are self sufficient in handling the intricacies of the asset management system. 
 
- Segregating Inventory, Fixed Assets, Stock-in-trade, etc. according to regulatory requirements
  Over here we provide the client enter various assets they have into different line items according to the requirements of the accounting standards and various statutory guidance. As we know, someone's Inventory can be another organizations capital assets. Sometimes revenue assets are classified as capital assets and vice-versa. This becomes a problem later on when in assessments the client is not able to explain the rational behind segregating the given assets into inventory, stock in trade, work in progress or a fixed asset. Sometimes this leads to disallowing of depreciation or expenses related the said asset, and penalty in extreme cases. Our in depth experience of handling such situations helps us provide the required suggestions to our clients to better manage their asset segregations.
 
- Tagging of Assets
  Here we take all the assets entered in the Asset management system from the FAR and denote a unique code to each asset. This unique code can be defined as per the requirements of the clients, and contain various details of the asset such as Unique ID, date of procurement, line items, location, Department responsible for its upkeep, etc. These details are replicated into a code and fed to the asset management system which generates a bar code/ QR code for that specific asset. This code is then printed on top of the line, high durability polyester labels whith the help of thermal printers. The thermal printers need to be of high qualities otherwise there is always a risk of the print on the polyester labels to go soft and eventually disappear.
  
- Physical Verification of Assets
  This is the main stage of the entire Fixed asset verification exercise. Over here most of the operational heavy lifting is done when our on field auditors and associate teams personally physically verify each asset, note its existence, operative condition and tag the asset with the code generated in the last step. In case the assets are already pre-tagged, then they are captured in our system by using a hand held laser device. All our operatives carry one of these devices.
  This is the most important stage because proper execution in this stage leads to effortless execution in the reconciliation stage, as well as we will be more confident of reporting our findings to the management. There are several problems faced by us in conducting this phase of fixed asset audit which have been discussed in detail in another article - Problems faced in Physical verification exercise.
 
- Reconciliation between FAR and actual finding
  The actual findings are catalogued by our team either in physical format or in an app based system. This information is the assimilated in our head office and a team of data scientists work on the same to figure out the various variances between the Fixed asset register and the actual ground reality. The differences between the two are of various kinds, for eg: Assets given in FAR but not found physically, or assets found physically but not given in FAR which are categorized as additional assets, etc. These results are found after reconciliation the FAR and actual findings and presented in form of a Fixed asset verification Report as explained in next step.
 
- Certification and Reporting
  The findings of the reconciliation and the corresponding variances are presented in a Fixed asset audit Report detailing the various subsets of the categories of results found. It also involves the detailed suggestions to the management on what are the correct practices being followed by them and what are the areas of improvement for better management and safe keeping of their assets. Also recommendations are given for various verticals and functions of the organization so that going forward, variances between FAR and actual findings can be minimized.
  Along with the above mentioned report, certificate is provided which is duly signed and stamped by a partner of the firm which is a Chartered Accountant. This certificate can be used for various regulatory and statutory compliances as detailed in a prior post.
 
- Guidance on Fixed Asset purchase and related tax planning & savings
  Along with the Physical verification exercise, we at AAA asset verification also provide consultancy on the proper procurement channels and techniques of fixed assets. Also the related deductions, exemptions, depreciations as well as additional depreciations are indicated by us, so as to the client can file correct returns and there can be no chance of disallowing any expenditure in assessments by the assessing officer. Also it is ensured that our client is claiming maximum tax benefit that can be availed. There are multiple exemptions which come out every year in budget, ministerial policies and amendments in tax code from time to time. We at AAA stay on top of these changes so that our client can derive maximum benefit from the same.
 
- Follow up verification and tagging of new items procured
  This is another area where most of our competitors don't provide their services. This is mainly because of the idea that this part of verification is not sustainable commercially. We at AAA have noticed that this is the most important intervening step between two successive Fixed asset verification exercises and thus go the extra mile in supporting our clients in providing the tags and also taking up the tagging activity for the assets procured in between the year or physical verification exercise period.
 
- Outsourcing of Asset Management activity
  This is another new vertical at AAA assets verification services being provided by our firm. Under this, the client outsources their asset management activity completely to us, where in we take care of mainlining the Asset management system, entering information of all the past and present procurements, generating depreciation reports and providing the Accounts department of the client's with various entries to be passed in the Fixed asset register. This maintains an insulated layer for the client which ensures continuity of business. This is also one of the most cost effective ways as the asset management systems are usually costly with even dearer AMC and upgrades. Also the additional modules and changes come at a cost. Include the cost of staff and man-hours required to maintain the proper asset records, it becomes prudent and economically beneficial to outsource AAA the entire asset management as we can take advantage of the base of multiple clients, which results only in marginal cost increase for us.
 
Our firm's USP is simultaneous execution of physical verification on ground as well as the reconciliation activity, resulting into quicker turnover rate of the projects. This helps our clients better estimate the time-lines that would be required by them to implement their envisioned strategy.
 
Our services span entire India with Head-office in New Delhi and branch offices in Mumbai, Bangalore, Gurgaon (Gurugram), Greater Noida and Nagpur. We also have a dense network of representatives associates in every major city across India.
The main differentiating factor between AAA and other fixed asset verification providers is the whole India reach and network of operatives we have. Also our emphasis on genuine execution of verification activity at ground levels provides a great degree of reliability to our client. We achieve the high confidence levels by conducting sample surveys of the assets covered by us by a different team, other than those conducting the primary verification. This results into two tire self checking mechanism whereby any deviations are quickly recognized and rectified.
 
Our clientèle of MNC's, government departments, Telecom companies, Hotel chains, manufacturing units, warehouses and cargo hubs, e-commerce industry. etc. swear by our services and we deliver the same standard to all the organizations we serve, year after year.
 

 

 






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