It's Halloween 2020, and there's not much that can scare us anymore. However, financial losses are still a terrifying prospect. Spooky ghost assets and terrible zombie assets can plague a fixed asset register, causing a lack of accountability and a lack of transparency.
So, what do you do? Call the Ghostbusters? Luckily, the solution is much simpler and will empower you to bust your undead assets on your own: fixed asset register software.
Fixed asset register software is a silver bullet which will keep your fixed asset register clean, up to date, and accurate.
What Are Ghost Assets?
Ghost assets are assets that are on your fixed asset register but aren't available for physical use. In other words, a ghost asset can be an asset that has been decommissioned, but not yet removed from your fixed asset register.
Why is this a problem? If you're submitting your fixed asset register to your finance department, it needs to be up-to-date and accurate. If there's an asset on your fixed asset register which is still depreciating in cost, yet has already been physically replaced, all of your data is incorrect.
In essence, a ghost asset will haunt your fixed asset register by adding costs. Your costs must be accurate for tax breaks and insurance purposes, so unintentionally presenting that you're paying more money than you are in operational costs is a huge problem.
What Are Zombie Assets?
Zombie assets are effectively the opposite of ghost assets. These are assets that physically exist for use, but aren't reported in your fixed asset register
These assets lumber on in your day to day use, hidden to the naked eye, looking like legitimate assets but still plaguing your fixed asset register. Why? Because they lower the accuracy of your costs.
Zombie assets reduce the overall financial costs in your fixed asset register, forcing you to miss out on earned tax breaks. If you haven't added a fixed asset as a business expense, you can't leverage it against your business' tax returns.
