Drawing from our extensive journey of steering hundreds of fixed asset verification projects, we understand a common query that echoes in the minds of many: “Why should we engage a 3rd party and not verify our fixed assets internally?” Having navigated the intricacies alongside our clients, we’ve encountered and addressed this question time and again. Here’s the insider perspective on why the benefits of engaging professionals far outweigh the allure of internal endeavors:
1. Unmatched Experience and Expertise:
Engaging professionals guarantees a wealth of experience and expertise necessary for executing asset verification projects of any scale. Not only can a seasoned team precisely:
- Define scope, objectives, and deliverables.
- Identify and address project-specific challenges.
- Establish accurate timelines, resources, and technology tailored to project objectives.
- Ensure efficient coordination, execution, and reporting.
2. Strategic Resource Utilization:
- Freedom from diverting staff from their primary tasks.
- No need to hire additional resources or compensate for internally earmarked ones.
- Elimination of the need to hire, train, and monitor resources.
3. Timely Project Execution:
While an internal team may lack the knowledge and training needed to plan, coordinate, and execute a fixed asset verification project within set deadlines, the perceived advantage of ‘execution flexibility’ can lead to unforeseen delays. In contrast:
- A dedicated professional team, led by an experienced project manager, ensures timely execution.
- Standardized processes and meticulous coordination guarantee adherence to planned timelines.
4. Unwavering Accuracy:
The essence of an asset verification project lies in obtaining accurate records of fixed assets. Internal teams, especially in their first attempt, may struggle with verification processes, leading to inadequate tagging and reporting inaccuracies. However:
5. Unbiased Insights:
Organizations often aim to uncover discrepancies such as ghost assets, theft, or misappropriation during fixed asset verification. Internal teams may face the risk of unintentional cover-ups due to departmental concerns. Yet:
- Professional teams, focused solely on verification, execute projects without bias.
- Third-party agencies are more likely to unveil findings that might be intentionally or unintentionally overlooked internally.
6. Guaranteed Cost-Saving:
While hiring a third-party professional team may appear costly initially, internal projects incur various hidden expenses. These include:
- Costs of hiring additional resources or compensating internal staff.
- Expenses for training internal resources or new hires.
- Opportunity costs of senior resources supervising the project.
- Potential costs of using incorrect technology, stationery, or approach.
- High possibility of rework costs for first-time task execution.
- The substantial cost of not completing the project on time or failing to achieve desired objectives.
All these costs certainly outweigh the perceived savings from internal execution.
The listed benefits of engaging a third-party professional team extend beyond the obvious, encompassing employee satisfaction, auditor confidence, and more. We present an authentic case, born out of navigating numerous projects, challenging the skepticism around outsourcing the Fixed asset verification activity.
Convinced? Let’s connect to explore the possibilities.
Not yet? Share your thoughts—we value every perspective.