Fixed asset management services.

Size: px

Start display at page:

Download "Fixed asset management services."

Dulcie McKinney
6 years ago
Views:

1 Fixed asset management services

2 Keypoint is one of the GCC s most comprehensive professional business services providers. We deliver statutory and corporate advice, accounting, investment administration, tax and VAT consulting, human capital, IT consulting, management consulting, financial regulatory compliance and trust administration services to a wide range of businesses from corporations and family managed conglomerates to single owner companies and financial services and insurance institutions.

3 Fixed asset management services Keypoint provides expert services to physically verify businesses fixed assets to determine their existence and to set up or update its Fixed Assets Register as a one-time exercise or at periodic intervals. Keeping track of a business fixed assets and ensuring their existence is a very important task but it demands substantial time and effort from resources that could otherwise be deployed in core operational matters to grow the business. Business managers, therefore, tend to outsource this administrative, but at the same time critical, task to third party experts in order to focus on business issues. This outsourcing also results in an efficient and cost effective solution for them. What are fixed assets? Fixed assets of a business are items that are used in the business to generate income or for administrative purposes that normally have a life span of more than one year. These would typically comprise land and buildings, plant & machineries, motor vehicles, furniture & fittings and IT, telecommunication & other equipment, but not include items that are held for sale in the normal course of business. In some large businesses, fixed assets that have life span of more than a year but with lower values are expensed at the time of purchase and not accounted as fixed assets. What is fixed asset register? A Fixed Asset Register is an accounting record that has information about the fixed assets in terms of quantities, values and related matters. The Register will typically show for each asset item; specification, quantity, cost, date of purchase, vendor, identification label code, owner, location and estimated useful life and depreciation. In some cases it may also reflect the estimated scrap value at the end of the asset s life span, service/maintenance timing and related information. The Register can be maintained in a simple spread sheet format or using a specialised fixed asset software depending on the nature of the assets and requirement of the business. Why maintain a fixed asset register A Fixed Asset Register is set up and maintained primarily to have control over the existence and movements of the assets in order to safeguard the assets. 1 3

4 There is a general tendency in many businesses to put in place little or no control over fixed assets as they are presumed to exist because their non existence would be noticed in some way or the other and, therefore, instituting controls are not seen as cost effective but more as a drain on resources. This may be a reasonable consideration for items, such as, land and buildings, installed plant & machineries and permanent fixtures & fittings if these are few and accounted separately in the books of accounts. However, when businesses have numerous fixed asset items and are held in different locations, these become susceptible to theft and/or misuse and, if no adequate controls are put in place, can give rise to significant losses to businesses. A Fixed Asset Register enables the implementation of such controls to safeguard the assets. There are also other significant benefits that result from the maintenance of a Fixed Assets Register, which are: Provides an immediate overview of all the fixed assets in a business Enables quicker inspection and physical count to check existence Facilitates the calculation of depreciation, thereby reducing time and effort and associated costs Assists with replacement and maintenance planning that will prevent operational hick ups Acts as supporting evidence for insurance cover and for any claim due to theft, fire etc. Provides ready information on cost and accumulated depreciation to account for disposed items Facilitates the revaluation of some or all of the asset items How can Keypoint assist Keypoint offers specialised services to physically verify the fixed assets and to set up a Fixed Asset Register afresh or to update an existing Register. Physical verification and updating an existing Fixed Asset Register can be done: as a one-time exercise at any point in time; at periodic intervals, such as once a year, covering all the items at once at periodic intervals covering a part of the assets at a time so that all the items are covered over a longer period of time The detailed tasks that we will carry out in our approach will be: Discussing with the management to get an understanding of the nature of items, quantities, values and the locations they are held Staff planning (both ours and client staff if required and time scheduling covering all locations Designing asset identification code (ID code) for all types of asset items that will generally reflect asset type, location and owner Selecting Fixed Asset Software and uploading the names of all asset items Physically inspecting and counting all the fixed asset items Keeping a track of any movements of items during the count (cut off procedures) to ensure Register quantities are adjusted accordingly Assigning an asset ID code for every item counted Using the labeling machine, generating ID code labels and affixing them to the asset items 4

5 Highest quality, reliability, confidentiality Our approach Our approach to set up or update the Fixed Asset Register will be as follows: Understanding Logistics planning Physical ccount Valuation & reconciliation Nature, type of asset items, classifications, values, quantities & locations Designing ID codes, staff scheduling, software selection & cut off procedures Counting, labeling & recording Pricing, depreciation & reconciling to books of accounts Recording quantities, ID code, location, owner etc from the count in the Register Reviewing the accounting records/invoices/contracts and determining the date of purchase, cost and vendor information and recording in the Register By discussing with the relevant staff determining the estimated useful lives of the asset items and any scrap value at end of life and determining depreciation rate and recording in the Register Arriving at the values of all the asset items in the Register, both cost and depreciated value, and reconciling to the values in the books of accounts Recording any other information related to the asset item that are required by clients Why Keypoint? We offer a reliable, timely and cost effective service with minimal interruption to business operations and its management and staff. We have a team of knowledgeable staff who have had hands on experience in preparing and/or updating Fixed Asset Register for clients covering many industry sectors to suit their business needs. Keypoint is one of the GCC s most comprehensive business services provider. We deliver Accounting, Compensation Programs, Business Advisory, Investment and Trust Administration, Human Capital, Business Continuity, IT Consultancy, Management Consultancy and Corporate Administration services to corporations and family managed conglomerates. ID coding, labeling and subsequent count and uploading the count information to the Register can be done using electronic devices and this will substantially reduce time, effort and associated cost involved in the maintenance of the Fixed Asset Register. Keypoint is lead by a management team having a wealth of knowledge and extensive experience with regional businesses and local regulatory environment. Our team of experienced professionals is our best asset, being multi lingual and highly qualified, and we therefore place a significant emphasis on continual professional development

Our people The key source of Keypoint s strength is our people. Our team is committed to quality client service, providing timely and accurate responses and solutions to any given scenario.

who are members of the Institute of Chartered Accountants, Management Accountants, Internal Auditors, Chartered Financial Analysts, Certified Information Systems Auditors, Chartered Institute of

6 Our people The key source of Keypoint s strength is our people. Our team is committed to quality client service, providing timely and accurate responses and solutions to any given scenario. Our consultants, around 55+, are qualified and experienced in their relevant fields and hold Masters or Bachelor degrees in Law, Finance, IT, Management or Business Administration, and professionals who are members of the Institute of Chartered Accountants, Management Accountants, Internal Auditors, Chartered Financial Analysts, Certified Information Systems Auditors, Chartered Institute of Personal Development and other IT Certifications including CISCO, PMP, ISO 22301/BS Contact us If you have any enquiries about our Fixed Asset Management services, please contact us and we will be pleased to discuss your business needs. Pramod Malhotra Senior Director pramod.malhotra@keypoint.com T Jitendra Gajria Senior Manager jitendra.gajria@keypoint.com T

7 Your success is our business

24th Floor, NBB Tower Government Avenue PO Box 11718 Manama Kingdom of

Financial regulatory compliance.

Financial regulatory compliance www.keypoint.com Keypoint is one of the GCC s most comprehensive professional business services providers. We deliver statutory and corporate advice, accounting, investment