Organizations face a significant challenge when tracking the condition, maintenance, location, and depreciation of their fixed assets. There is a simplified approach that organizations use in fixed asset management which is by using serial numbered asset tags that label, often with barcodes for an easy and accurate reading. No matter the size of an organization, tracking assets is an essential concern for every company because, without an accurate method of keeping track of assets, it would be straightforward for a company to lose control of them. With the continuous technology advancement, asset tracking software is now available that will ensure effective tracking of valuable assets of any organization.
What is Fixed Asset Management?
It is an accounting process that ensures tracking of fixed assets for financial accounting, theft deterrence, and preventive maintenance. Asset tracking software allows companies to track all assets in all categories such as where assets are located when it was checked out when it is due for return when it is scheduled for maintenance, the cost, and depreciation of each asset. With effective management, companies will be able to reduce new and unnecessary equipment purchases, and can consequently calculate taxes accurately based on depreciation schedules.
Importance of Fixed Asset Management
1.Managing maintenance and repairs: Keeping track of the maintenance requirements that keep a company’s valuable assets in perfect working condition is not an easy task, but with fixed asset management, all assets will be tracked effectively and efficiently.
2.Depreciation: All assets will depreciate over time so there is a need to monitor the status and current value of your company’s assets, whether it is an asset that will remain in the company for a long period or an asset that have to be moved from one location to another.
3.Cost reduction: The software ensures that your assets are maintained most cost-effectively. This could potentially save money by providing time to plan out the tracking down and find the most cost-effective options.
4.Improved efficiency and accuracy: The full implementation of effective fixed asset management enables companies to access real-time data about how each asset is functioning. It will evaluate the lifestyle of assets and as well measures performance and efficiency.
5.Increased security: With the help of this system, it is much easier to store and track data accurately which makes it easier to minimize the chance of human error and consequently, ensures that only authorized personnel can view sensitive information of the company.
For every company that sees its asset as the main component of its operations, it is essential to have a clear picture of the overall value of its holdings by tracking all fixed and movable assets with useful fixed asset management software.
Tracking not only helps companies in understanding the current value of their fixed assets but also helps in planning routine maintenance to maximize the lifespan of high-value assets.