Why the need for an asset register?

The reforms within SARS (South African Revenue Service) have brought about a dramatic change in the way assets are viewed and reported (Company Law NR 61 of 1973 together with 82 of 1992). An asset register is increasingly being used as a tool to provide financial information regarding depreciation, maintenance and asset utilization.

A recent development in tax legislation in terms of Capital Gains Tax has placed extra emphasis on the role that a company's assets play as a major determinant of that company's market value. The more accurate the company's asset register is the more accurate its financial reporting will be.

The accuracy of a company's financial information has also gained tremendous exposure in recent times in terms of compliancy, transparency and corporate governance, it also have direct consequences on a director's exposure to corporate liability.

These are all factors that are receiving major attention in the drafting of new legislation and company regulations.

Auditing firms also use an asset register in compiling accurate financial statements at the end of each trading period. Again corporate governance and public liability are major concerns for all involved. There are thus numerous parties that would benefit from such services being rendered by NID.

Why Not Do It Yourself ?

Organisations often appoint under-utilized personnel to do the inventory, only because they are available at such time. It is not anybody that can compile a complete asset register in a short period of time. Most of the systems and equipment used by companies are outdated and do not seem to produce the results expected.

In most cases company employees do not have the skills or time to complete the inventory task at hand. Employees often criticise management and senior personnel for not outsourcing asset registers to specialists in the field of asset management.

The initial cost to implement your own Asset Management procedure is in most cases more costly and labor intensive, than to make use of specialists in the field of asset management such as NID.

At NID , Asset Management and Asset Registers are what we do and specialise in. The end result will clearly show why NID is considered the leaders in the field of Asset Management.