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Why Maintaining an Asset Register is important by Vikram kumar





Article Author Biography
Why Maintaining an Asset Register is important by
Article Posted: 06/27/2013
Article Views: 73
Articles Written: 10913
Word Count: 451
Article Votes: 0
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Why Maintaining an Asset Register is important


 
Business
The asset register of any organisation is an important part of the running of that organisation, yet many organisations either do not keep their asset register up-to-date or even neglect to have an asset register at all. If someone were to ask you exactly what assets your organisation owned, how they were being used and what they worth, would you be able to answer that question? If you are in a management position but are not able to answer these basic questions, then you definitely need to get started building an asset register right away. The asset register also forms a part of the basic valuation infrastructure, allowing for more efficient and accurate valuation of your company or organisation.

As an business or company grows and occupies larger spaces, it should be self-evident that it becomes more and more difficult to keep track of assets and equipment.

An asset register is also important for insurance purposes. When your company or organisation applies for insurance, the most important element is the value of the assets to be insured. This means that if, for example, a fire destroys all the property of the company, insurers must know exactly how much they need to pay on your insurance claim. Part of the proper method of assessing how much your company or organization should be insured for is by looking at the asset register to determine how much the existing assets are worth.

Getting started building an asset register is not a difficult task. Some basic information needs to be recorded in the register, including a tracking number to be affixed to the asset, a description of the asset, the brand and model number, the serial number, warranty information, date of acquisition, cost of acquisition and the actual location of the asset.

Once you have established a proper register, you will need to keep it updated. An asset register that is not up-to-date will not be of any real use, so you need to appoint someone to keep track of all incoming assets as well as the disposal of any existing assets.

Finally, it is important to note that each country has its own rules and regulations on the form and maintenance of an asset register. This is mostly because of the asset register’s importance as a part of valuation infrastructure, thereby allowing proper valuation of a company’s assets for tax purposes.

Resource Box:

Although it is an essential part of the Valuation Infrastructure of a company, maintaining an Asset Register can be difficult, especially with complicated rules governing such registers, so why not engage the expert services of RHAS to ensure that your asset register is up-to-date and immaculate!

Related Articles - Valuation Infrastructure, Asset Register,

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