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For all types of businesses, asset management becomes more complicated every year because of a variety of reasons. In addition to compliance needs and regulatory requirements, the number of assets companies manage also grows exponentially, and businesses that reach into multiple markets find that they must manage a variety of unique assets.
A powerful asset management software with audit functionalities, like BlueTally, can be an invaluable tool when you are looking to audit your company’s assets either for compliance reasons or to help prepare internal financial statements.
How does Asset Auditing work?
Physical and/or digital asset audits involve the verification and alignment of your company’s physical and digital assets with your asset management system’s list of assets. The primary goal of an asset audit is to make sure that all assets listed on your company’s documents are actually present, and that the documents do not miss any assets that should be on them.
Companies must keep detailed records of their assets and their values, especially when it comes time to file taxes. Asset audits are clearly valuable when it comes to accounting statements and regulatory compliance.
Benefits of Asset Management Software for Audits
Companies of all sizes can find that asset management software that is capable of providing specific audit-related benefits is a great resource.
In addition to making auditing simpler and, more importantly, more accurate, it does a better job of giving businesses a comprehensive picture of their asset’s status- including its performance, cost efficiency, utilization, life cycle, fraud potential and more. Here are some more benfits:
- Analyze Your Performance. Comparing new reports with previous audit reports is one of the best ways to gauge the actual performance of your company when it comes to the use and existence of assets. However, that comparison is only useful if the reports you’re comparing are accurate and clear.
- Reducing the number of physical verifications. The main advantage of asset management software that runs on mobile devices is that multiple people can conduct physical audits in order to verify assets without needing to travel.
- Identify and avoid fraud risks. Detecting and preventing fraud is one of the most crucial aspects of any audit. By properly accounting for all assets, the likelihood of fraud passing under the radar is reduced significantly. The easier it is to identify assets, the more difficult it is to hide fraudulent activity.
- Evaluate your insurance coverage. A lesser known benefit of clear asset management is that it can save you money on insurance premiums. If your assets are audited accurately, you may be able to avoid overpaying for insurance for assets you don’t have.
Choosing the Right Tool
Using BlueTally, companies and organizations can manage both physical and digital assets with ease. Learn more about BlueTally and get started for free.