What do schools and businesses have in common? One clue: government institutions usually have them, too.
The answer is an audit—a fixed asset inventory audit, to be exact. It’s a top priority, a highly crucial task that prepares these organizations to keep up with their assets for various purposes, financial or otherwise. A well-organized audit gives them accurate inventory tracking and prevents theft or loss. It contributes to the organizations’ sound long-term financial planning.
However, the auditing process is complex. For schools, especially, with multiple campuses or large amounts of equipment, it may seem overwhelming. If your school needs help steering this vital task, we have put together the top ten tips for a smooth and efficient inventory audit.
This guide is meant for those wanting to perform an effective fixed asset inventory audit, intended specifically for schools and other educational institutions. There are many ways you can prepare for an audit, including working with a professional fixed asset inventory company. Read all our tips below.
Tip 1: Start with Correct Asset Records
Before doing anything else, a critical step you must take is to ensure your asset records are up-to-date. This means updating your recent asset purchases, donations, or disposals. The records include the following information:
- Asset description
- Serial numbers or asset tags
- Purchase dates
- Location
- Details regarding condition and depreciation
This information will make the physical inventory audit go much quicker. Messy or incomplete asset records will delay the process. If yours is not up to par, consult a fixed asset inventory company to establish a reliable system.
Tip 2: Tag and Label All Assets
Tracking untagged or unlabeled assets is a common problem in every school inventory audit. For your audit to go well, make sure every item in your school’s inventory has been labeled or tagged correctly. Use a unique asset tag or label to streamline the process.
Barcode or RFID tags are often the most reliable, enabling quick scanning and minimizing human error during the counting. However, you can choose other alternatives that are durable and easy to read or scan.
With this action, nothing goes unaccounted for. Your team can also easily cross-reference the physical item with the data stored in the asset management system.
Tip 3: Use Technology to Your Advantage
Technology helps. Using advanced tech in your inventory audit saves time and reduces errors. Anything from barcode scanners to specialized asset management software can drastically speed up the audit and provide precise results.
If there’s one technology your school should invest in, it’s asset management software. Unsure about which one? Work with a school inventory audit company.
Many companies dealing with school inventory offer platforms that use cloud storage. Teams can update the assets’ status in real time as the audit moves from room to room. Any discrepancies that might occur can be detected instantly.
Tip 4: Plan for an Efficient Route
The layout of your audit matters; never start an audit without planning the route. As you must move from room to room, divide your locations into zones or sections before beginning the audit. Furthermore, it’s wise to assign teams to specific areas to avoid overlapping. For example, you can divide the auditing team based on departments, classroom levels, or buildings.
This auditing route will guarantee no asset is missed. You can also avoid re-auditing the same areas. Then, the teams can report their completed sections to a central point, where the real-time progress is tracked on the software.
Tip 5: Train Your Audit Team
The success of your audit ultimately depends on the people conducting it. As much as technology and well-tagged assets help, your audit team is the one handling them. Therefore, your audit team must be well-trained and knowledgeable in conducting the process.
If your audit team is in-house, training them should become a priority, as they might not yet have the skills to handle complex processes. However, if you’re working with a fixed asset inventory company, they will already have the personnel and expertise to do it. Still, the internal team should be trained to work with the external auditors.
Tip 6: Schedule the Audit at a Convenient Time
Performing an audit at a busy time will only result in plenty of disruptions. Hence, schedule the audit when there’s minimum activity on campus. This means the audit should occur during breaks, holidays, or after hours. This way, you can access all areas of the school without disturbing anyone.
Remember to notify the relevant staff members in advance and that everyone is aware of the audit schedule. If any of them must show up on the audit day, they will avoid getting confused.
Tip 7: Do Routine Spot Checks
Between one audit and the next, there’s a possibility—however small—that school assets might have moved. Therefore, it’s helpful to check their locations regularly, particularly for items that change locations frequently between classrooms, labs, or various departments.
You can do spot checks or partial audits like these throughout the year to maintain more meticulous records. It’s also helpful to reduce the workload during the full audit because you spend less time tracking down misplaced assets or correcting outdated records.
Tip 8: Search for Broken or Obsolete Items
Not just checking where the assets’ locations are, your inventory audit must also assess their condition. Pay attention to equipment that’s damaged or obsolete. Any non-functioning items may need to be replaced and retired from service. This depreciation tracking is critical for financial reporting and budgeting.
Once you record asset conditions and depreciation accordingly, it’s easier to plan for replacements and upgrades. Evaluating asset conditions is a service many fixed asset inventory companies offer, so if you work with them, they will guarantee your inventory reflects the real value of your assets.
Tip 9: Review and Fix Errors Immediately
It’s not uncommon to find a mismatch between your records and the assets during a physical inventory audit. It could be missing items, unrecorded assets, or mistakes in asset descriptions. Addressing these disparities soon after you find them will save you time during the audit process.
If an asset is missing, find out where it was last known to be placed. Work with the responsible department to track it down. If the error lies in asset details, correct the information on the spot for more accurate reporting.
Responding to mismatched records quickly will reduce the risk of encountering bigger problems, like funding requirements or insurance complications, in the future.
Tip 10: Work with a Professional Inventory Company
Let’s be honest: performing a thorough inventory audit can be formidable for many schools. As schools lack manpower or resources, many end up turning to a professional school inventory company or a fixed asset inventory company for help.
These companies usually have the expertise and experienced personnel to run a smooth operation. Furthermore, they may have specialized technology that schools don’t possess for a thorough audit.
Several benefits of working with professionals are:
- Error-free and complete auditing: Professional auditors apply their knowledge and tools to have the skills and tools to secure every asset for proper documentation.
- Compliance expertise: Inventory companies help schools that receive federal or state funding (like Title 1) to keep up with the legal requirements.
- Less burden on internal staff: Outsourcing the audit process allows your internal team to focus on their main responsibilities. As a result, the audit can be completed to the maximum standards.
Conclusion: Make Your Next Inventory Audit a Success
An audit requires more than just organized records to be successful. It also needs careful planning, the right technology, and knowledgeable staff. These ten tips—including planning routes, conducting spot checks, and choosing the most ideal time—will help bring a straightforward, plain sailing audit process.
You can always choose to do the audit internally with your own staff. You may also hire a professional school inventory company. Just remember that a complete physical inventory is essential for financial transparency, regulations fulfillment, and efficient use of resources.
Streamline your processes and regularly audit your assists to safeguard your school’s investment and maintain accountability. Prepare now for a trouble-free audit.
