How Fixed Asset Register Reconciliation Helps Your Business Grow?

If you are a business owner, you should maintain a correct record of tangible and intangible assets. Doing this will help you make sound business decisions and right investment strategies. For this, you need to consider fixed asset register reconciliation and regular evaluating of your insurance. If you fail to do these, you may put your company at risk with operational and financial risks.

Before going into the reconciliation process, let us understand what fixed register is. It is a list containing the assets your business owns. Sometimes, this term is confused with a stock register which is a collection of the semi-finished and finished goods. However, only fixed and finished goods are listed fixed register.

For the register reconciliation, you need to approach a professional company to have the trusted experts to look into business entities. Once you give access, the said expert will look into your all kinds of assets like:

• Which are traced and inventoried to the accounting record
• Which are incorporated in the fixed assets and are not identified during unrecorded items
• Which are inventoried but not identified

Looking into these assets and analysing closely will help you identify the entities which might have missed due to improper notice.

The benefits of consulting for fixed asset register reconciliation:

• You will have a consistent data source which can be used for critical decision-making. This will streamline your business without the expenditure of time
• By identifying your both physical and virtual assets, you will reduce the expense on unnecessary purchases and save money. This ultimately gives you the best return of investments.
• You can comply with the statutory requirements
• You can protect your assets from thievery
• It will enable you to have an annual calculation of depreciation
• Allows you to track gross book value and the net value of gross
• The register can assist you during the audit of assets and asset verifications
• It can help you estimate the repairs and maintenance cost.

Besides maintaining register conciliation, you need to have a proper idea of insurance valuation, which is a thorough assessment of the rebuild cost of the property. This allows you to have a maximum return in case of any undesirable events.

Scheduling for these two aspects with the professional companies will help you keep your business in-check and up-to-date. Hence, look for qualified experts today and shape your organisation into a safe business.

Why Plant and Machinery Valuation Is Important

Have you ever wondered why Plant and Machinery Valuation is important? Well, if not then you should. Whether you are in construction, mining or manufacturing industry; evaluating the worth of assets will help you in buying, selling, and financing them.

Valuation is a process of determining the worth of plant and machinery asset. The asset includes various devices used in industry for the production of goods and materials. Let's learn individually all factors which make plant and machinery valuation important:

• Fetches you good buyers: Plant and machinery valuation helps you get good buyers for your assets. Every buyer would like to make an informed decision before investing in something huge as plant and machinery. They need to assess the worth of the assets to assure that it is worth investing. The valuation helps to ascertain the buyers to place an efficient bid. They get to know that the price tag of the plant and machine represents its true value. Thus, holding a valuation of assets can be a key component in determining the buyer's bid.

• Get the best price: Plant and machinery valuers undertake valuation to decide the price of the assets. Here, the valuers compare the prices of other recently auctioned plant and machinery. They evaluate the class, capacity, manufacture year, model, and many other extrinsic & intrinsic factors. To arrive at a fair price the valuers make allowances for highly valuable features of the asset. Once all the features are compared, the value of plant and machinery asset is determined.

• Helps in financing equipment: If you want to expand your business, purchasing equipment becomes necessary. In order to finance the equipment from financers, plant and machinery valuation is needed. Through valuation, you can easily fetch equipment finance for heavy machinery, manufacturing, IT and office equipment.

• For reporting finances: Every business needs to prepare finance report periodically. It includes balance sheet, accounting, auditing and other management considerations. Here, the valuation of plant and machinery is important to estimate the overall expenditure on the maintenance and evaluate factors like depreciation.

Mitchell Munn Valuations specializes in providing plant and machinery valuation services across Australia. We offer our valuation services to all types of assets across the various sectors of industries. We house a team of professional Plant and Machinery Valuers. Our valuers are known for providing reliable, reputable and responsible services. Their expertise and knowledge are highly admired. For every valuation, they pay keen attention to each and every detail of the plant and machine. To know more about our services feel free to contact via call or online on our website.

Why is There a Need to Get Asset Valuation Services?

Do you own an organisation and have possessions like buildings, equipment, machinery etc? Then you need to have the legal verification of the assets you have. Asset Valuation Services, which is the process of evaluating and verifying your assets, will help you determine the total net worth of your assets.

Assets are of two types - tangible (buildings, equipment, machinery, etc) and intangible (brands, patents, trademarks, franchises) and it's efficient to get the valuation by asset verification because of the following reasons:

• To Determine the Right Price of the Asset

When you are looking to buy or sell an asset, verifying your assets will determine the right price of that particular asset. By this, you don't have to pay more while buying and cannot get less when you are selling an asset.

• For the Correct Tax Calculations

It's mandatory for everyone to pay the tax for the assets you have. By asset valuation services, you can determine the tax amount accurately.

• In the Time of Applying for Loans

When you applied for a loan, you can show your net asset value and it can act as the collateral as protection against the debt default. It is also important to the lender to determine how much loan amount is covered by your company.

• For the Easy and Correct Audits

If you own a public company, then it's regulated. Which means you have to show your financial reports during the audits for transparency. Asset Verification, which is a part of the audit process, can be easily handled if you have the right amount of your assets net value.

• When Merging with Other Company

When the two companies are merging, the net value of your assets will size up your business in comparison to the other company.

If you are looking for the company who can value your assets legally and accurately, Mitchell Munn Solutions is here to offer you the expert asset valuation services. Having over 35+ years of experience, we are the specialists in plant, machinery and equipment valuations. And we provide you with independent, objective and properly researched valuation advice. Contact us today for any enquiries and we'd be happy to assist you.

Importance of Carrying out Insurance and Machinery Valuation

A common question asked by a number of clients is why an accurate valuation is necessary for the equipment. Well, the simple answer to this is; it is considered preferable to be proactive as opposed to being reactive in regards to providing accurate insurance replacement costs to the insurers.

It is required that the insurer has the correct replacement as a new machinery valuation at the current values and not the depreciated ones. An honest mistake made by the majority of the clients over here is that they underestimate the costs to rebuild the asset, as the construction costs have raised considerably in the current years. But, it goes without saying that having the assets uninsured in the event of the claim can further lead you to huge financial implications to the cash flow of the company.

Well, there's again a common misconception of some clients related to the Insurance Valuation. According to them, this is not important and considers it to be just an extra financial burden on top of their existing insurance premium. However, there have been many cases where the clients have actually saved money as a result of obtaining a professional valuation. So, it definitely is important and should not be ignored. Here's why:

An insurance loss is something that no company would want to face. There are many businesses who even fail to recover from insurance losses which can further lead to insolvency if the business cash flow cannot sustain the unexpected shortfall.

Now, when the loss adjuster arrives on behalf of the insurance company, you will need to provide them with evidence that states the sum you are insured for. And, in case you are unable to do so, the loss adjuster will then appoint professional valuers to undertake a thorough valuation of your machinery.

It is at this point that the discrepancy between the insured value and true cost of the replacement begins. So, before you end up with these things, it is best carrying out the insurance valuation as otherwise, you may end up with the underinsurance!

If you are looking forward to a professional who can help you with insurance and machinery valuation, MitchellMunn Valuations has to be your pick. We are a leading independent corporate valuation and advisory practice firm having an experienced and knowledgeable team of plant valuers. We have the expertise of valuing all types of fixed assets including plant and Machinery Valuations, equipment valuations, infrastructure valuations and building valuations.

We offer professional and certified valuation expertise to every project. So, mitigate your valuation and business risk and further reduce your time and costs with the assistance of our professional valuers. For more information, feel free to visit our website or simply give us a call.