3 questions every CFO should ask about their assets

by Michael Lehnert · CEO, seventhings

Most CFOs know their company's cash flow down to the last cent. When it comes to physical fixed and current assets, however, the situation is different. Tools, testing equipment, conference technology, furniture, company phones: these assets appear on the balance sheet, but rarely in a system that is maintained on a daily basis. This is exactly where a blind spot emerges—one that three simple questions can bring to light.

Key Takeaways

• European SMEs hold an average of 50,000 to 200,000 euros in unused equipment (McKinsey, 2024).
• 67% of CFOs cite capital tied up in unused assets as one of their top three liquidity concerns (Deloitte CFO Signals, 2024).
• 18% of corporate assets cannot be physically located during audits (KPMG, 2024).
• 73% of ERP users maintain parallel Excel lists because their ERP system lacks the granularity required for mobile assets (Forrester, 2023).

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What does asset transparency mean for the CFO?

Asset transparency means that every physical device in the company is clearly identifiable, locatable, and assigned to a cost center. For the CFO, this is not an IT issue, but a balance sheet issue: Every asset that cannot be located distorts the book value and ties up capital that is needed elsewhere. seventhings creates this transparency for the very assets that fall through the cracks between ERP and CAFM: mobile devices without sensors.

Three questions bring this blind spot to the table. They are just as suitable for your next finance meeting as they are for the annual financial statements.

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Question 1: Where exactly is our capital tied up right now?

Unused equipment costs money without ever appearing as a line item in your reporting. On average, European SMEs store 50,000 to 200,000 euros worth of equipment that is no longer actively used (McKinsey, 2024). According to the same study, furniture accounts for 35 to 45% of this so-called dead inventory.

The pattern behind this is almost always the same. Location A makes a new purchase because no one knows that Location B has an identical device sitting unused in storage. 67% of CFOs confirm that this exact type of tied-up capital is among their top three liquidity concerns (Deloitte CFO Signals, 2024). Without an overview of all locations, this concern remains vague, as no one can say which asset is located where or how often it is being used.

seventhings solves this with a cross-site inventory overview. Before a department orders new conference equipment or testing tools, the system shows whether a suitable device is already available and unused at another location. A vague concern turns into a concrete figure that can be saved in the next procurement budget.

How much capital is typically tied up in unused corporate assets? European medium-sized companies store an average of 50,000 to 200,000 euros in unused equipment, often spread across multiple locations (McKinsey, 2024). seventhings makes these inventories visible via a cross-site overview before new purchases are made.

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Question 2: Would our asset data hold up to an audit?

Audits reveal a problem that no one in the finance team likes to admit: 18% of corporate assets cannot be physically located once an auditor asks specifically about them (KPMG, 2024). The result is write-offs between 12,000 and 35,000 euros per company per year that have to be corrected retroactively. With manually maintained asset records, the audit failure rate is as high as 41%, compared to significantly lower figures for automatically documented inventories (ISACA, 2024).

The real problem is rarely the loss of a single device. It is the lack of traceability: who last used the asset, when was it last tested, and where was it on the reporting date? Without a consistent history, every answer remains an estimate, and estimates are not a good starting point when facing an auditor.

Asset Accounting, IHK Aachen: "For the first time, the software actually made inventory fun." — N. Müller, Asset Accounting, IHK Aachen

seventhings automatically documents every assignment, location change, and inspection in the asset history. Maintenance logs can be created from a template in seconds, with the complete history generated automatically in the background. For the auditor, this means a seamless trail instead of a retroactive reconstruction. What asset intelligence specifically means in this context is explained in the foundational article of our series.

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Question 3: What is the parallel world of ERP and Excel costing us?

An ERP system maps financial processes well, but rarely the day-to-day reality of mobile assets. That is why 73% of ERP users rely on Excel lists in parallel (Forrester, 2023). Each of these lists is its own version of the truth that no one automatically reconciles with the main system.

The effect is particularly evident during the annual closing. Where asset data is maintained in real-time rather than on an annual cycle, closing cycles are noticeably shortened because the finance team does not have to consolidate lists from different departments first (Deloitte, Financial Close Report, 2024). The parallel world of ERP and Excel therefore not only causes frustration, it directly costs time during the closing process.

seventhings does not replace the ERP. It fills the gap left for mobile assets and provides the ERP with clean, current data via an interface instead of manually maintained spreadsheets. For controlling and accounting, this means one source of truth instead of three competing Excel versions.

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What now?

1. Start your inventory assessment. Check how many assets are currently tracked only in Excel or not centrally recorded at all, and make a rough estimate of the tied-up capital.
2. Digitize your first assets. With seventhings, your first assets are live in the system in under 14 days, via QR code scan and without the need for an IT project.
3. Request an asset potential analysis. Our team will work with you to calculate exactly how much capital is tied up in your inventory and where new purchases can be avoided.

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Frequently asked questions

What three questions should a CFO ask about their physical assets?

First: Where exactly is capital tied up in unused assets? Second: Would our asset data hold up in an audit? Third: What is the cost of maintaining a parallel world of ERP and Excel? All three questions target the same blind spot: mobile assets without a central, up-to-date data foundation.

How much capital is tied up in unused assets on average?

European SMEs hold an average of 50,000 to 200,000 euros in unused equipment (McKinsey, 2024). For furniture, this accounts for up to 45% of so-called dead inventory. The exact value depends on company size and the number of locations.

Why do audits often fail due to asset data?

18% of company assets cannot be physically located during audits (KPMG, 2024). For manually maintained records, the audit failure rate is 41%, significantly higher than for automatically documented inventories (ISACA, 2024). A missing history is usually the actual cause, rather than the loss itself.

Is Excel a risk for the annual financial statement alongside the ERP?

Yes, if the lists are not regularly reconciled with the main system. 73% of ERP users maintain parallel Excel lists (Forrester, 2023), which delays the annual closing process because data must be consolidated from multiple sources. Real-time data foundations noticeably shorten this process (Deloitte, Financial Close Report, 2024).

How quickly can a CFO see initial results with Asset Intelligence?

With seventhings, the first assets are recorded and live in the system in under 14 days, with no IT project required. Reliable, evaluable data foundations for audits or annual financial statements are built upon this over the following months, depending on inventory size and the pace of recording.

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Conclusion

The three questions from this article can be raised in any finance meeting, regardless of whether an asset management solution is already in use. Those who can answer them have a solid foundation for capital allocation, audit preparation, and annual closing. Those who cannot have found a great starting point for their next conversation with the facility or IT team.