“Give me six hours to cut down a tree and I'll spend the first four sharpening the axe” - Abraham Lincoln
It is a recurring practice for many companies to leave the contracting of services related to the control of their assets until the last moment, dedicating little (or no) time to the planning phase.
To be effective and to adequately meet your objectives and expectations, a work to improve asset control must be very well planned. A well-structured work plan must allow for a substantial reduction of unforeseen events, avoiding the commitment of the deadlines and costs previously estimated for the project.
I often say that planning an asset control project must go hand in hand with your budget. More than providing a value well adapted to meeting the company's needs, it is during the pricing phase that important information must be collected and analyzed that will allow us to know in depth the quality of the asset base.
When well executed by a professional capable of properly interpreting asset history information, this analysis, together with the information obtained in discussions with accounting professionals, should identify potential sensitive situations that may require efforts at different stages of the project, evidencing situations such as:
The existence of records with closed values or with unit values that are not consistent with the nature of the assets, corresponding to massive unified acquisitions and which, possibly, will require consulting the invoices to support the reconciliation phase. The existence of records with generic, incomplete or insufficient descriptions to adequately support physical and accounting reconciliation, which may require inquiries to the company's technical areas or to the invoices. The existence of opening balance records that, ultimately, may correspond to the acquisition of entire business units, evidencing a volume of assets possibly greater than previously estimated. The existence of records of intangible assets, facilities, and minor ancillary assets (or even expenses) that should not be covered by the physical inventory. The existence of a significant amount of records of old assets, not consistent with the current conditions of the physical facilities, evidencing possible losses not reflected in the accounting data. The existence of records classified in accounting accounts unrelated to the nature of the assets. The existence of own assets in the possession of third parties and/or of third party assets located on the company's premises. Specific needs to be met, such as the compounding of assets, which may require alignment discussions between the areas of Engineering and Accounting. It is also during the planning stage that the expectations of Management and of technical areas such as Accounting and Engineering must be understood and well aligned, allowing for the establishment of clear and achievable objectives. Planning must also provide a realistic view of the current situation of assets from different perspectives, so that needs can be fully met.
Other points that must be addressed in planning are the allocation and scaling of resources, the preparation of the schedule of activities, and the selection of the control technology to be adopted (QR code , Barcode or RFID, for example). Regarding this last point, it is important to always bear in mind that the drafting of layout and the production and delivery times of platelets (or tags ) have a direct impact on the start of fieldwork, since they must be available and in sufficient quantity from the first day of inventory. For the adoption of RFID technology, it will also be necessary to carry out prior proofs of concept for the correct selection of tags and identification of boundary situations that may compromise the functionality of the system.
These are just a few examples of situations that must be addressed during the definition of the work plan, but which are often relegated to the background, leaving critical points in the form of unpleasant surprises when the project is already under execution, compromising deadlines and blowing the budget. A physical inventory job is much more than simply a”count ” of assets, as I have heard a lot over the course of almost 20 years of experience. It is a detailed technical work, which can have different degrees of complexity and risk potential, which is more evident when it is not planned and executed correctly.
Na TATICCA Allinial Global Brazil we offer a wide range of services related to the valuation and control of assets and materials, such as the physical inventory of fixed assets and inventories, the study of useful lives and asset valuations for various purposes. We strictly follow the regulatory bases and the best market practices, valuing quality, technical soundness and professional ethics. And yes, at TATICCA we take care of the planning of your project with the seriousness and attention it deserves. Ask us for a proposal.
(Jackson Martins — Asset and Materials Assessment and Control Solutions Partner)
Contact TATICCA Allinial Global Brazil, which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services, for more information, at www.taticca.com.br or e-mail taticca@taticca.com.br and learn more. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
