- Assets and equipment · EAM
- Plant / Operations Director, CFO / Finance, Operations Manager, Team Leader / Supervisor
- Manufacturing, Retail and branch networks, Logistics and warehousing, Services and offices, Public sector
How to run a physical asset inventory, step by step
In short
To run a physical asset inventory, agree the scope and the source list, make sure every asset can be identified, set counting rules and owners, count, then compare, investigate and correct the register. The count is finished when the register is corrected, not when the report is signed. Run a trial on a small area first, and rehearse the awkward cases: missing labels, equipment off site and assets that changed location during the year.
Before you start: what the count is for
A fixed asset inventory confirms that the assets in your register exist, are where the register says and are in the care of the right person. It also finds assets that exist but are not recorded. If the only result is a signed report, you have spent a lot of effort to learn little. The aim is a corrected register and a list of causes to fix.
Step 1: agree the scope and the source list
Decide which business units, sites and asset groups are in. Then pick one source list and freeze it on a date. No parallel spreadsheets. If finance and operations hold different lists, reconcile them before the count, not during it.
- Which sites and rooms are in scope?
- Which groups: fixed assets only, or also laptops, phones, meters and portable equipment?
- Who owns the final list?
Step 2: make every asset identifiable
Each asset needs a unique identifier that the counter can read without guessing. If numbers already exist, keep them. Print only the missing labels and attach them to unlabeled assets before the count day. Decide how you will mark a duplicate or an item whose label is unreadable.
| Identifier | When it fits |
|---|---|
| Existing asset number | The list is clean and labels are legible |
| Barcode or QR code | Scanning with a phone or scanner, fewer typing errors |
| UHF RFID | Large volume, many items to read at once |
Step 3: name the owners and set the rules
For each area, one named person is responsible for the assets in it and for answering questions about them. Then set counting rules in writing:
- Dates, teams and the order of rooms.
- No moves of assets during the count, or every move recorded with time and place.
- What to record for each item: present, location, condition.
- Where exceptions go and who receives them.
Step 4: run a trial
Before the real count, test the whole process on one location or one asset group. Include a piece of equipment that is in service, one that is held off site and one that was moved to another user. The trial shows where instructions are unclear and how long the work really takes.
During the trial, count the manual steps between confirming an asset in the room and having the register corrected. Each step is a place where an error or a delay can happen.
Step 5: count
Counters confirm the asset and its location, record the result and note exceptions. Three exceptions come up in almost every count.
- Missing label. Identify the asset by serial number and description. Do not create a duplicate entry. Attach a label and note it.
- Equipment held off site. Employees on remote work, vehicles, field crews and service providers. Ask the holder to confirm location and condition. Record it with the date.
- Changed location. The asset is real but in another room or branch. Record where you found it. This is a register error, not a loss.
Also note condition. Damaged or unused equipment is useful information before the next purchase: the item you are about to buy may already be sitting in a cupboard.
Step 6: compare and investigate
Compare results with the register. You will have three kinds of difference: items in the register but not found, items found but not in the register, and items in the wrong place or user. For each, assign an owner and a due date. An item not found is not yet a shortage. Check the move history, handover documents and service records first. See how to resolve asset count differences and who signs off a difference.
Step 7: correct the register and close
Document each decision: found in another location, transferred, disposed, confirmed as lost. Update the register accordingly. Write down what caused the differences and what will change in daily work, such as recording moves as they happen. Treatment of shortages in the books is a matter for your accountant. For the register itself, the point is that after the close it matches the physical state.
How to pick the count team
Good counters know the area well enough to recognize equipment, yet are not the people who answer for it. Pairs work better than singles: one person confirms the item and the label, the other records. Brief them for fifteen minutes before the start: what counts as found, how to describe an extra item, and who to call when something is off.
Time the count away from peak periods. A warehouse counted during a delivery rush produces moves that distort the result. A plant counted during a shift change produces confusion about who holds what. If you cannot avoid it, record every move with a time.
Typical timeline
| Phase | What happens |
|---|---|
| Weeks before | Scope, owners, source list, trial run |
| Days before | Missing labels attached, team briefed, rules published |
| Count days | Confirmation, exceptions, daily check of open lines |
| Weeks after | Investigation, decisions, register correction, causes recorded |
Where a system saves time
Paper sheets and spreadsheets mean retyping. A count in Remanently Assets is run on a smartphone with QR codes or barcodes, or with UHF RFID for larger volumes. The result is compared with the register in the system and differences appear as a list of missing, unrecorded and misplaced items. The history of moves and user changes helps explain what happened, and you can keep the identifiers you already use. See asset tracking software for what to compare in a tool.
If you count on paper, the asset inventory template is a good start. For a list of questions to ask before counting, use the asset count checklist.
Frequently asked questions
How often should we run a physical asset inventory?
At least once a year in most organizations. High-value or high-risk groups, such as laptops and portable equipment, benefit from more frequent checks. Recording moves during the year makes each count shorter.
Who should do the counting?
People who know the area but do not own the assets being counted, supported by the area owner for questions. Teams should know the procedure and exceptions before they start.
What should we do with assets held by employees?
Agree a procedure in advance: the holder confirms the asset and its condition by a set date, with a photo if possible. Include remote workers, travelers and field crews.
Do we stop work during the count?
Not necessarily, but control movements. Either pause moves in the area being counted, or record every move with time and place so it does not distort the result.
When is the count finished?
When every difference has an owner and a decision, and the register has been corrected. A signed report alone does not mean the register is right.
Do we need RFID to count faster?
Not to start. A smartphone and QR codes or barcodes work well for many organizations. RFID makes sense when the number of labeled assets makes scanning one by one the bottleneck.
Rehearse your next count on your own data
Book a short demo and we will run a test count on a sample of your register, including missing labels and equipment held off site.
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