In today’s competitive business environment, Indian companies invest crores in machinery, IT equipment, medical devices, furniture, and infrastructure. Many organizations today are facing serious asset management problems in India due to poor tracking, manual records, and lack of verification systems.
Yet, many organizations still struggle with poor asset control.
As a result, they face audit objections, financial losses, and compliance risks.
In this blog, we explain the 7 most common asset management problems in India and how professional asset tagging and verification can solve them.
1. Missing Assets – A Major Asset Management Problem in India
❌ The Problem
Many companies cannot physically locate assets recorded in their books.
Common reasons:
- Transfers without documentation
- Scrapped assets still in records
- Poor handover between departments
This leads to “ghost assets” in financial statements.
✅ The Solution
Professional asset tagging services using QR codes and mobile scanning ensure that every asset is uniquely identified and traceable.
Regular physical verification removes non-existing assets from records.
2. Inaccurate Fixed Asset Register (FAR)
❌ The Problem
Most FARs are maintained manually or on outdated Excel sheets.
They often contain:
- Wrong locations
- Incorrect asset values
- Missing serial numbers
- Duplicate entries
This creates problems during audits.
✅ The Solution
Through fixed asset verification and reconciliation, physical data is matched with accounting records, ensuring 100% accurate FAR.
3. Audit Failures and Compliance Issues
❌ The Problem
During statutory, internal, or tax audits, companies fail to provide physical evidence of assets.
This results in:
- Audit qualifications
- Management letters
- Regulatory risks
✅ The Solution
Professional asset verification provides audit-ready reports with photos, geo-tags, and asset IDs.
This makes audits smooth and stress-free. These asset management problems in India affect financial reporting, audit compliance, and operational efficiency in many organizations. Asset verification also supports compliance under the Companies Act 2013 and statutory audit requirements.
4. Poor Asset Tracking Across Locations
❌ The Problem
Multi-location companies struggle to track assets across plants, branches, and warehouses.
There is no centralized visibility.
✅ The Solution
Using mobile-based asset tracking systems, companies can monitor assets across all locations from a single dashboard.
This improves operational control.
5. Wrong Depreciation and Tax Calculations
❌ The Problem
When asset records are wrong, depreciation and insurance are calculated incorrectly.
Companies end up:
- Overpaying taxes
- Paying unnecessary insurance
- Showing inflated balance sheets
✅ The Solution
After physical verification, only valid and active assets remain in records, ensuring accurate depreciation and tax computation.
6. Inventory and Asset Mismatch
❌ The Problem
In many organizations, inventory and fixed assets are mixed up.
For example:
- Tools recorded as assets
- Machinery parts recorded as inventory
- IT equipment missing from registers
This leads to reconciliation issues.
✅ The Solution
Professional inventory verification services separate assets and inventory properly and create structured classification systems.
7. Lack of Technology in Asset Management
❌ The Problem
Many companies still rely on:
- Manual registers
- Physical files
- Unsecured spreadsheets
This increases human error and data loss.
✅ The Solution
Modern asset management uses QR codes, RFID tags, and cloud-based mobile applications for real-time data capture and reporting.
How Professional Asset Tagging Solves These Problems
By using structured processes and technology, professional asset management companies help organizations achieve:
✔ 100% asset visibility
✔ Accurate FAR
✔ Audit-ready documentation
✔ Improved financial control
✔ Reduced compliance risk
For example, companies using professional fixed asset tagging services experience faster audits and better financial reporting.
Why Choose TagMyAssets for Asset Management
TagMyAssets provides end-to-end solutions including:
- Physical asset verification
- QR & RFID tagging
- FAR reconciliation
- Mobile app-based audits
- PAN India deployment
With headquarters in Delhi NCR and teams across India, we support manufacturing units, hospitals, retail chains, and corporate offices.
You can also explore our successful case studies to see real project outcomes.
Frequently Asked Questions (FAQs)
1. Why is physical asset verification important?
It ensures that assets recorded in books actually exist and are usable.
2. How often should asset verification be done?
Ideally once every year or before statutory audits.
3. Can asset tagging help in theft prevention?
Yes, tagged assets are easier to track and monitor.
4. Is asset tagging useful for small companies?
Yes, it helps companies of all sizes maintain proper records.
5. Do you provide PAN India services?
Yes, TagMyAssets delivers services across India.
Get Professional Help Today
If your organization is facing asset management challenges, professional verification and tagging can make a significant difference. By addressing asset management problems in India through professional tagging and verification, companies can achieve long-term control and transparency.
📞 Contact our experts today for a customized solution.
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According to the Institute of Chartered Accountants of India (ICAI), proper asset verification is essential for reliable financial reporting.
