Having fixed assets well managed throughout their life cycle, obtaining the specified returns, in a safe and environmentally responsible manner, creates value and offers a clear competitive advantage for the company.
Today’s complexity and speed of change directly affects the fixed assets of organizations. Therefore, particularly active-intensive companies, need to coordinate their activities, with well-defined procedures and processes, obtaining traceability, updated information, proper use and compliance with standards, that is, achieving a balance between costs, risks and benefits of their performance.
Fixed assets are considered as all those goods (property, furniture and equipment; according to the name established in the International Accounting Standard) that comply with the parameters set in the IAS and the IFRS (International Financial Reporting Standards).
In most cases, these represent the majority of the value of a company, in accounting terms.

According to the rules established in the IAS, goods can be considered as fixed assets only when it can be determined that:
- They are elements used by an entity for the production of goods and/or services, for administrative procedures or leasing to third parties;
- For more than one accounting period.
Furthermore, assets will only be considered fixed when:
- There is the possibility of obtaining future benefits on them and/or derivatives thereof.
- Its amount can be reliably determined.
Problems derived from poor management of fixed assets.
It is of utmost importance to maintain an exhaustive control of the property, plant and equipment to avoid the most common problems of equity inventory, such as: their accounting, the determination of their book price and the charges related to depreciation, losses and deterioration of the same, to avoid these things, we suggest you to contact fixed asset management companies in India.
Otherwise, you could face significant inconveniences, beyond accounting issues, such as the following:
Inventory uncertainty: By not having a frequent control method, the loss of assets can occur; as well as, also, the appearance of extra expenses for the company, due to delayed maintenance and unnecessary replacements thereof.
The fact that, for almost any business, the items of property, plant and equipment represent the majority of its book value, denotes the sensitivity of having a problem of these characteristics.
Excessive consumption of human and financial resources: It is clear that the traceability of fixed assets can be a real headache, if you do not have the proper system.
The inventory of assets requires paying a team of people or assigning workers from your payroll to perform these functions, to the detriment of their original assignments.
Doing this several times a year can lead to a huge headache and expense that can be reduced by consulting fixed asset management companies.
Lack of knowledge of the status or location of your assets: Fixed assets, like everything else, have a useful life that can be extended with proper maintenance.
However, this becomes very difficult to program, when the processes are done within the company, leading to the accumulation of damaged goods and, added to this, the lack of certainty in their location.
Tax problems: Investment in fixed assets is tax-regulated. This means that if you do not have control over the acquisitions of your business or the productive state of your assets, you could face problems with the collection office.