Steps for conducting a physical check of fixed assets

Performing a physical verification of fixed assets is critical for any organization. Regularly verifying the existence, condition, and location of fixed assets is essential. Fixed assets are valuable resources for any organization and must be monitored carefully to prevent loss, theft, or damage.

This blog will discuss the steps involved in conducting a physical check of fixed assets.

Step 1: Prepare a fixed asset register

The first step in conducting physical verification of fixed assets is to prepare a fixed asset register. The fixed asset register should contain a complete list of all fixed assets, including their description, cost, date of purchase, and location. Keeping the fixed asset register current is essential to ensure that all fixed assets are accounted for during the physical verification process.

Step 2: Assign barcode numbering 

A unique barcode number to each fixed asset is crucial in tracking them accurately. The barcode number should be visible and affixed to the fixed asset. Barcode Numbering will help identify the fixed investment during the physical verification process, making the process more efficient and accurate.

Step 3: Plan the physical verification

The physical verification should be planned and scheduled well in advance to avoid any disruption in the organization’s regular operations. The plan should include the physical verification date, time, and location. The team responsible for conducting the physical verification should be identified and trained on the process.

Step 4: Conduct the physical verification

 During the physical verification process, the team should verify the existence, condition, and location of each fixed asset. The barcode number should be scanned to ensure the fixed asset matches the information in the fixed asset register. Any discrepancies or variances should be noted, and corrective actions should be taken.

Step 5: Reconcile the fixed asset register

After the physical verification process, the fixed asset register should be reconciled to ensure it matches the physical count of fixed assets. Any discrepancies should be investigated, and corrective actions should be taken to rectify the discrepancies.

Step 6: Update the fixed asset register

The fixed asset register should be updated with the results of the physical verification process. The fixed asset register should be updated with any changes in the fixed asset, including its location, condition, and additions or disposals.

Outcome

Conducting physical verification of fixed assets is critical for any organization. It ensures that all fixed assets are accounted for, in good condition, and at the correct location. Assigning barcode numbering to fixed assets helps in tracking them accurately and efficiently. By following the steps outlined in this blog, organizations can conduct physical verification of fixed assets effectively and efficiently.