What are Ghost Assets?
Do ghosts exist? Yes, no, or maybe, but ghost assets do exist. They are in your records, but you tend to ignore their presence and end up in trouble.
Any asset that is lost, stolen, or unusable but is still listed as active on your fixed asset register is referred to as a “ghost asset.” For example, a broken printer, unused computers, stolen goods, anything of this sort can be listed under the ghost asset category.
How do Ghost assets harm the business?
Ghost assets affect the business and workflow. As explained above, they are the assets that are physically unavailable but exist in the records. Such assets may cause harm for businesses. Imagine how much time an employee might lose trying to locate the asset which is recorded in the files. In turn, it would affect productivity and waste time. Taxes are also being paid for such assets and money is being wasted for no reason.
How to identify Ghost assets?
Business records can be used to locate and get rid of ghost assets. No matter how big or small the business is, the authorities are required to keep records from the beginning. Avoiding ghost assets can be made easier by updating every single and minute change.
Businesses frequently fail to recognize the need to eliminate unused or stolen goods from the records until it is too late. The fundamental procedures for locating ghost assets are linked to record maintenance. Regularly update, manage, and monitor your business records.
Benefits of eliminating Ghost assets.
- Reduces tax amount
- Reduces Insurance
- Increases productivity and Saves time
- Accurate financial reports
- Saves money
- Improved and effective financial forecasting
Unattended ghost assets can cause stress and uncertainty. Track your records and eliminate such assets from the records, soon.