While assets can be recorded in books, their physical presence is also recorded periodically in order to verify their presence. It is a process to make sure that the assets and stocks of an entity actually exist. In case of larger companies, the complexity and distribution of assets like machinery across an organization can make it extremely difficult for the company to keep track of all of them.
It is in benefit for businesses to conduct an annual physical count of all the fixed assets and stock to check for verifying the accuracy as there would be continuous addition and disposals regularly.
If stock-in-trade is overstated, it may lead to inflated profits. One should be extraordinarily cautious in verifying the stock. They should see that they are valued as per the accepted principles of accountancy and industry norms.
The more efficient the use of the asset, better the final output and results for the company. If stock-in-trade is incorrectly recorded, verified or evaluated, the resultant profit or loss for the period will be incorrect. It will also affect the Balance Sheet and the assets, and net worth will present a wrong picture
Thus, Asset tracking and utilization can be a significant value addition in ensuring the profitability and growth of an enterprise.
We have an expertise in stock audit for corporate and non-corporate assesses engaged in various industries.
Our team will:
1. Perform reconciliation between physical asset or stock and accounting records,
2. Consolidate physical report for all sites, branches of all the assets / inventories,
3. Compute variances providing reasons for the same.
4. Provide Detailed Physical Verification Report