Financial Services Firm Improves Accuracy of IT Audit to Save on Annual Use Taxes
International financial services firm saved millions on taxes with automated, accurate asset tracking.
Audits are important to IT asset management, but they are time consuming, tedious and unfortunately not reliable. Even regular audits, or incremental audits, waste resources and are only valuable until a move or add is not immediately logged.
A national financial services firm was struggling with accurately accounting their IT assets current locations and status. Anecdotally, the IT team was aware assets purchased in one state had been deployed and were in service elsewhere, but did not have an accurate paper trail to back that up. They also occasionally discovered that some assets in various offices across the country that had been counted as in service were in fact offline and had been decommissioned. The team felt that the firm was paying much too much in both annual use taxes in some states on assets not currently located in those states, and because the firm was not able to claim depreciation on decommissioned assets. But they didn’t have a reliable way to prove this.
Within weeks of the initial consult, Asset Vue Inventory was able to quickly install RFID tags on assets. The on-site team worked closely with the financial services firm’s IT managers to replicate the installation across all sites nationally, and, for the first time, get an accurate audit of every IT asset in use. This immediately freed up hundreds of person hours previously spent on regular, incremental audits.
The new system was quickly put through its paces and automated more of the receiving process and, through an integration HP Asset Manager and Svc Now, automate more of the lifecycle process for critical assets.
As the client had suspected, Asset Vue Inventory was able to create an accurate audit of assets that were no longer located in a state with an annual use tax. The system was also able to notify managers in advance when warranties or the set useful life of assets was coming up, accelerate and automate more of the decommissioning process, and record depreciation on these assets. Claiming that depreciation saved the firm more money. In all, the cost avoidance for this firm as a result of implementing the system is in the millions, and the money saved exceeded the cost of Asset Vue Inventory in its first year deployed.
Not every Asset Vue client has so dramatic a tax situation as this one, but every IT department and data center can benefit from more accurately understanding the current status, lifecycle stage, and location of every critical asset in their inventory. The first step for any financial services firm - or any IT operation - is an accurate audit of assets.