Every business wants to achieve its targets at the end of the year. It doesn’t matter if you’re a small business or an enterprise, the rules for success remain somewhat the same. One of the most critical business processes is to have a streamlined audit. So, why is an audit so important and how can it help improve your organization’s performance? Well, holding audits does a lot more than just filter out the financial records of your company. It helps you achieve the following benefits:
1) Measure actual growth vs. proposed growth: Setting up business goals requires a lot of hard work and resources. What a loss of resources would it be if you are not able to meet even half of your set targets. Internal audits provide an easy way out of this! After you generate reports of your business progress, it becomes easier to compare trends and predict future business strategies.
2) Reduce risk of fraud and poor asset management: Business inventory management involves a great deal of cautious planning and execution. Your inventory is the capital investment and you need to make sure you are getting the desired returns on it. Audits help you pinpoint which assets are dragging your rate of return down. You can cut down on costs, optimize usage and amend your finances. One way to do that is to implement a cloud-based asset tracking software across your firm.
3) Enables compliance with government regulations: Competing in the market can be tough if you are not keeping up with the set of rules and regulations designed for your organization. You will be forced to face non-compliance lawsuits if things get out of hand. To prevent that from happening, it’s important to hold internal audits to make sure you are meeting the legal standards at all times!
Role of asset tracking software in conducting successful audits
Now that we have established how important is it to organize audit practices for your business, it’s time to look over some tools which can help you do this. Asset tracking software is a cloud-based solution which offers a variety of features for streamlined business activities! You can get ready for the audit season in no time with the following practices:
1. Evaluate performance and learn from past practices
A wise business decision would be not to repeat the same blunders again and again. In order to avoid making the same mistakes, it is necessary that you keep a record of past occurrences. This way you will be able to identify what went wrong and how should you amend things for the future. By doing this, you will not only save overhead costs but learn to use your assets in the best way possible.
While holding audit sessions, you should have the past information related to your company’s assets. But how can you obtain all that previous data accurately near an audit season? Asset tracking software lets you track history for all your inventory items. This enables you to keep yourself updated with the past records of asset usage and general trends on utilization. Information such as this makes audits easier and convenient!
Read more: Fixed asset management software and audits: an overview
2. Develop cost-effective strategies by analyzing expenses
In order to maximize returns from capital investment, you should be able to generate a list of all expenses related to your inventory. A simple task such as this can pose serious challenges if you fail to keep a record of all your transactions. Without proof of investment, it becomes hard to justify credibility and transparency of business operations. You certainly don’t want to deal with such situations during audits.
To make things easier for you during an audit season, asset tracking software enables you to prepare a list of all expenses related to assets. By using vendor service management, you will be able to keep a track of the amount spent on purchases, maintenance, and repair of assets. When you have all the data related to asset expenditure, it becomes easier to analyze patterns and come up with the most cost-effective practices. For instance, you can also determine if you can get improved performance from an asset at a lower cost. This way you can organize streamlined audits with detailed expense sheets for accuracy!
Read more: Taxes made simpler with asset management software
3. Assess asset utilization through lifecycle management
Depreciation is a valuable concept when it comes to inventory and asset stocks. Since the useful life of assets changes over time, you need to update your records in a timely manner. If you don’t take into account the current value of equipment, you won’t be able to maintain any accurate financial records.
One of the reasons why depreciation is critical to consider is because it helps in tax reduction. Since you won’t be using the complete asset in a single year, the overhead costs can be spread over the useful lifespan of that particular asset. Consequently, this practice then becomes mandatory when it comes to an audit season. Cloud-based asset management software helps you maintain depreciation records on your business assets. This way you have a clear idea of how long your assets can last. You should know the worth of your inventory at the present time so that you can write it off in your records. Carry out seamless audits through organized asset lifecycle management!
Read more: Use equipment tracking software to add value to your audits
Be prepared for the audit season through streamlined inventory control practices
Many organizations tend to suffer huge losses during audit season due to the absence of organized data on business assets data and incorrect financial records. Such unfortunate scenarios can be easily avoided through simple asset management practices implemented at an early stage. Even if you don’t have an online asset tracking software deployed for your business right now, you can always start anew!
The audit season becomes easier and simpler with efficient data management through tracking history to evaluate performance. Features like vendor service management provide transparency in costs and asset purchases for an improved insight into business performance. You can now keep track of depreciation and know when to retire assets for optimized business functions. With all these supercharged features geared to boost business growth, you don’t need to worry about audits anymore!
What’s more to asset tracking software?
EZOfficeInventory is the leading asset tracking software used for streamlined audits by small businesses and enterprises worldwide. It helps them achieve efficient business performance and faster growth.
For more assistance, drop us an email at support@ezo.io
