IT assets need better management

Communication breakdown between IT and finance could damage businesses, according to asset management specialist

A lack of communication between IT departments and finance means many firms are overstating their assets and could risk losing significant sums of money and punitive action from auditors, according to a leading asset management firm.

Overstating the asset management registry can have particularly damaging results for a business in terms of disaster recovery, explained Keith Dolby, managing director of Real Asset Management. This could include delayed insurance payments, charges for claiming nonexistent items or paying for equipment that you do not need, he added.

"People have good processes for what they have bought, but not for what they no longer have," said Dolby. "It's not all about IT, but it is a big factor – sometimes there are hundreds of PCs [on a register] that haven't even been made for 10 years and are highly unlikely to still be there."

Because office PCs usually fall below the capitalisation threshold of around £1,000, accounts departments are not obliged to log them. Meanwhile, IT managers are more worried about managing and tracking software licenses, meaning some IT assets can slip under the radar, said Dolby

"We try and promote one common system running through all departments so finance knows these things exist, even though it is below their level of importance," he added. "Most IT departments think there's no need to communicate to the finance team what they've got, but it only needs an auditor to flag up that they're not happy with what they see and there will be all sorts of regulatory issues."