Physical Inventory Audit

What is Physical Equipment Inventory Check

Every company has some assets and equipment, and if it wants to function reasonably, it must know where they are. Unlike accounting or document inventory, a physical inventory of equipment is purely practical. It is mainly conducted for room equipment, work equipment, machines, devices, instruments, and work tools. In other words, a physical inventory of equipment provides a simple and quick answer to the question of what is located where. Small and medium-sized businesses address:

• Verifying Asset Presence and Location: Ensuring that the physical inventory matches the information recorded in your asset inventories. This process helps identify discrepancies due to errors, theft, or loss.
• Assessing Condition: Evaluating the quality and usability of work equipment to determine if they are in usable condition. 
• Updating Records in Asset Inventories: Maintaining accurate and up-to-date inventory records is crucial for effective equipment management. 

By achieving these objectives, SMBs can maintain accurate inventory records, prevent stock discrepancies, and make informed decisions regarding inventory management.

Every piece of property must be located somewhere or entrusted to someone. An equipment inventory answers the question of where everything is located and what its condition is.

Choose Right Type of Equipment Audit

1. Location-Based Equipment Audit

This type of audit is based on the physical location of the equipment. It is commonly used in offices, workshops, or facilities where equipment is assigned to specific rooms or workspaces.

• Room Equipment Inventory – Checking equipment assigned to specific rooms.
• Workplace Equipment Inventory – Auditing equipment in shared work areas or departments.

2. Project-Based Equipment Audit

This approach is ideal for project-driven businesses, such as construction or installation companies, where equipment is assigned to specific sites or projects. Auditing tools, machines, and assets assigned to a specific project or job site. Keep a list of issued equipment for each project or job site a regularly review the list to prevent loss or damage.

• Construction Site or Installation Site Equipment Inventory 

3. Checkout-Based Equipment Audit

A proactive approach to tracking equipment assigned to employees or contractors. Auditing equipment issued to employees anytime during employment. Helps prevent missing, damaged, or misplaced work equipment.

• Employee-Assigned Equipment Inventory 

Equipment Inventory Check Process

Equipment inventory check is easy done in four basic steps.

1. Selecting an employee, place, room or location for inventory
2. Load the inventory list
3. Check and verify the actual status
4. Save the log from the performed inventory

Examples of Worplace Equipment Audits 

Aptien is an online software that provides you with a central solution for asset record keeping and the ability to track it all in real time. It will allow you to place inventory either to a location or to an employee.

Office Environments: Asset Audits:

• Auditing offices helps account for equipment like computers, printers, and furniture, ensuring that assets are properly recorded and maintained.
• Scope: Office furniture (desks, chairs, meeting tables, furniture, TVs, appliances), IT equipment (monitors, keyboards, printers), and shared assets (phones, projectors).

Construction and Assembly Sites: Equipment & Tool Audits:

• Construction Sites: Preventing loss or theft, maintaining compliance with safety regulations, and ensuring tools are in working condition.
• Scope: Power tools, machinery, safety gear, heavy machinery, and mobile equipment (generators, ladders, drills)

Manufacturing: Equipment & Tool Audits:

• Workplace, Assembly lines - Equipment and Tool Audits: Regular audits of tools, machinery, and equipment on work sites help prevent loss, ensure proper maintenance, and verify asset allocation.
• Scope: Power tools, safety gear, heavy machinery, and mobile equipment (generators, ladders, drills).

Healthcare:

• Room Equipment Audits: Hospitals and clinics conduct audits of medical devices and equipment to ensure availability, functionality, and compliance with regulatory standards.
• Scope: Medical Devices

Logistics & Transportation: Fleet & Equipment Audits: 

• Vehicle Equipment: Ensuring vehicles and its equipment are operational, tracking maintenance schedules, and reducing unplanned downtime.
• Scope: vehicle Equipment,  Vehicles, GPS devices, handheld scanners, and loading equipment, Logistic centers equipment,

Technology and IT Services:

• Hardware and Software Audits: Companies audit IT assets, including computers, servers, and software licenses, to manage assets, ensure compliance, and plan for upgrades.

Schools & Dormitories:

• Classroom or Dorm room inventory check
• Scope: Office furniture (desks, chairs, meeting tables, furniture, TVs, appliances)

Hospitality: Room Equipment Audits:

• Room Equipment Audits: Hotels perform audits of in-room amenities and equipment to ensure guest satisfaction and manage asset lifecycles.
• Scope: Furniture, TVs, appliances, minibars, safes, and other in-room assets.

Benefits of Well-Maintained Equipment Inventory

The benefits of a well-maintained asset register are clear. Well-maintained asset and inventory records provide a buffer between employee and departmental requests for assets and managerial approval of those requests. When the true status is known, decision-making is easier and unnecessary or duplicate purchases of equipment and assets are reduced.