You don’t need Peter, Ray, or Egon (the original “Ghostbusters” team) to zap phantoms. All you need is Sage FAS or Sage Fixed Asset software.
Phantom assets are anything showing on your books that doesn’t exist. While many companies think of phantom assets as inventory missing from the warehouse, it can also include missing assets such as computer equipment, office furniture, and manufacturing equipment.
While it seems strange that a forklift or a drill press can disappear, if they aren’t checked into and out of the company’s inventory of fixed assets, they can certainly look as if they disappeared. That turns them into “phantom assets.” They’re showing up on your books as assets but do not exist.
What’s the problem with phantom assets? And why eliminate them?
Phantom Assets Used for Unscrupulous Purposes
Most companies just view phantom assets as a nuisance. There are some, however, who view them as an opportunity to do something questionable.
These companies take the missing asset and continue listing it as an asset on their balance sheet. This inflates the value of the company by making it appear as if it has the item and can potentially liquidate it for cash, for example.
Another problem arises when companies take phantom assets such as inventory and pretend it’s not missing. Not only does this cause headaches for sales and support when they tell customers items are in stock when they’re not, but it can be used to cover up shrinkage. Any items missing from inventory, whether it’s raw materials awaiting fabrication or a desk chair, should be investigated and accounted for before too much time has elapsed. Thieves rely on secrecy. Pretending items aren’t missing enables them to steal more.
At worst, phantom assets reflect theft. At best, they reflect sloppy inventory and fixed asset management. All are problems that smart manufacturing companies should solve quickly before they lose money.
Sage FAS: Reliable Fixed Asset Management
Enter Sage FAS or fixed asset software, a package that enables companies to track all fixed assets.
Track the Location of All Fixed Assets
Sage FAS enables you to track all fixed assets by geographic location. Manage manufacturing equipment, vehicles, computer equipment, office furniture, and more using Sage FAS. Mobile devices transform into handheld scanners through a downloadable app that enables you to swipe and scan barcodes affixed to the item as they move from one location to another. Never lose track of where an essential piece of equipment is located when you use Sage FAS.
Record Actual Fixed Asset Value
Record the actual value of fixed assets. Sage FAS takes into account depreciation costs, so you have an accurate estimate of the value of all items included in the asset inventory.
With the right information, you can plan capital projects, improvements, and investments in new manufacturing equipment or costly assets. Sage provides accurate reports on the status of all your assets so you can plan for new investments in technology, plant equipment, vehicle fleets, and more.
Like all Sage products, Sage FAS integrates with Sage ERP software. It adds valuable data and information to an already robust software package for manufacturers.
Phantom assets can wreak havoc with your accounting. Worse, they can cover up theft or poor asset management, both of which contribute to lost profits and opportunities. Bust those ghosts and eliminate phantom asses with Sage FAS.
If you’d like to learn more about Sage Fixed Asset software or other Sage software packages, contact Emerald TC today at 678-456-6919.