What is an Asset Register? Why is it important?
In the simplest terms, an asset register is exactly what it sounds like, a registry of all the assets owned by a company that are used in its operations, for example, land, buildings, machinery, equipment, computers etc. The typical asset register includes name, description, value and depreciation, useful life, location and other useful details.
An asset register can be a boon to the operations of your business, regardless of size and are worth the effort needed to set up and maintain.
Why do you need an Asset Register?
A properly updated asset register is a ledger containing information on your organizations complete assets is extremely useful information to a variety of people, ranging from accountants needing to balance the books at the end of a year to prospective investors wanting a more in-depth look into your company’s assets. Asset registers are also useful to other individuals, for example, in facilities management. A good asset register for a building can help a facilities management company work faster and more efficiently, making sure that your assets are properly maintained and ensuring wear and tear is kept to a minimum. Banks also find asset registers useful when making a decision to grant loans to a company, as they are a compiled list of the firm’s assets.
The Best Asset Register is one that is up to date
As useful as an asset register can be for your business, it is only as useful as the information it contains. This is why keeping your asset register updated on a regular basis is key to ensuring its usefulness. Ideally, the asset register should be in an electronic format and easily accessible to key personnel. Asset registers should also be updated after major asset changes, such as when assets are bought, sold or disposed of in order to ensure accuracy.
Ideally, an asset stock take should be conducted every quarter in order to verify whether what you have on the books is reflective of what your company has in reality. Any changes or discrepancies between the two should be reconciled and updated.
An asset register is a living document and needs to be maintained properly for you to get its full benefits. It can make tracking your company’s assets easier and helps you work more efficiently than before.
Looking to set up an asset register for your organization? Perhaps you need to update and reconcile an existing register in time to balance your books? Land Sterling’s experienced team of consultants is here to help! Send us an email at email@example.com or call us on +971 43 808 707.