Why should companies track fixed assets?
Fixed assets happen to be a key resource for businesses and dominate a significant section of the net worth present on the balance sheet. Today, many organizations are facing immense difficulty in tracking condition, location, quantity, depreciation, and maintenance status of their fixed assets. A popular approach to tracking fixed assets is by using fixed asset inventory tracking software.
Maintaining, recording and reconciling the fixed assets is important since errors can cause inaccurate evaluation of a business. This can affect lenders, agencies, and investors making utilization of a fixed asset tracking system extremely important. Companies need to track fixed assets in order to practice preventive maintenance, theft deterrence, and financial accounting.
The need for fixed asset inventory tracking software
No matter what the size of your company is, asset tracking surely is of major importance. Fixed assets refer to any ‘permanent’ equipment or object that the business makes use of to accomplish tasks internally. Employees use those fixed assets that the company owns and have to return them. This means, your company can lose control over your assets if an efficient method of asset tracking is not used.
The recent technological rush has reduced the manual method of asset tracking massively. This method is not just slow but also results in the incorrect calculation of depreciation. It lacks the accuracy in asset tracking of the acquisition of new fixed assets. With the invasion of technological advances, comes in the fixed asset tracking software that helps any size of business to track valuable fixed assets. These assets can be furniture, equipment, and supplies.
Fixed asset tracking system lets companies track what assets they own, who has it, or when it is scheduled for maintenance. It also keeps track of when it is due for return, or when it was last checked out and what is its depreciation status. When a robust fixed asset inventory software is used, asset managers can easily report, manage and track fixed assets throughout their useful life and retirement.
How can fixed asset inventory tracking software help your business?
1. It provides real-time asset management
Better visibility means better decisions. You can have a bird’s eye view of your fixed assets with fixed asset tracking software. You can scan all your assets to get a quantitative record and enable physical monitoring of your assets. It enables you to track items as they are moved to a particular location or as they arrive in real-time.
Connect efficiently with your team and make well-informed decisions using real-time updates on your fixed assets
For instance, you are looking for a projector to deliver a presentation. You know your employee packed it away for storage but you don’t remember where exactly. Instead of rummaging through the storeroom, basement or warehouse, you can simply locate it right from your office desk. Just a few clicks can save your company a considerable amount of time. Similarly, hospital management can track the movement of important fixed assets like medical devices and supplies useful to doctors. Imagine how having real-time information on the movement of a dialysis machine can help doctors save people’s lives!
Read more: Fixed Asset Management Software Made Easy
2. It helps you conduct seamless asset audits
Whether the asset audits are done externally or internally, they tend to put a lot of strain on your business. Nonetheless, audits are important to filter out potential ghost assets and licenses. Your business might be paying for those ghost assets in form of maintenance fees and taxes.
In case an asset is not found in the records, it means the value of a fixed asset has depreciated over time until the accounting for fixed assets had no value. With a fixed asset inventory tracking software, you can perform audits seamlessly. It helps to minimize compliance risks and enhance the visibility of your assets.
3. It enables you to track and manage maintenance schedules
Maintenance expenses are routine periodic costs performed in order to protect the value of fixed assets. Very often, company’s maintenance management is at a loss since they are using the traditional method to track schedules. Fixed asset inventory tracking system lets you maintain and record data on service and maintenance in real-time. You have complete maintenance records on your fixed assets, easily accessible to your staff members.
Perform timely maintenance and repair of your fixed asset extending their lifespan
Every time a fixed asset is sent to service, you can record all the relevant data like name of service agent, vendor number or date of service. If the fixed assets you have need periodic maintenance, fixed asset tracking solution is definitely a lifeline. It alerts responsible employees about scheduled maintenance to ensure everything happens right on time.
4. It empowers you to avoid unnecessary repair and maintenance costs
Tracking the life cycle of fixed assets is extremely important. When you have the essential data about an item like how regularly it is maintained, how often it is used and when it was acquired – you can make accurate plans for a replacement.
Unproductive assets can disrupt the flow of your business operations and incur unnecessary costs. Fixed assets sure have a finite useful life which is why accountants should monitor the decline in usefulness (or the asset’s value). With the online inventory tracking solution in place, you can anticipate and monitor devaluation of an asset. This way you can then replace it at the right time.
EZOfficeInventory – Take charge of your fixed assets!
Tracking your fixed assets is important for the growth and profitability of your company. With EZOfficeInventory’s fixed asset inventory tracking software, you can track your fixed assets from its purchase to its disposal. By keeping track of your assets, you will know when exactly to replace or repair them. It lets you make informed decisions about your fixed asset inventory. Your organization can track fixed assets in real-time through barcode labels or RFID tags supported by our software.
Proper tracking enables your company to consistently pass external and internal audits. Automation of the entire process of fixed asset tracking lets everyone in the company track assets in real-time. It lets them provide vendors, auditors, and clients with the required data. Data is efficiently and quickly reconciled with your financial records, letting you exercise complete control over the company’s fixed asset inventory.
EZOfficeInventory offers you the control to better safeguard and centrally manage your company’s fixed assets. You can access and track asset information like maintenance logs, asset condition or location status even after a disaster. The credit goes to our features that support disaster recovery, cloud backups and security. Cut the cost of physical inventories and maximize asset valuations for depreciation deductions. Also, reduce thefts with our state-of-art asset tracking technology.
Want to learn more about our fixed asset inventory tracking software?
EZOfficeInventory is the leading fixed asset tracking software used by businesses around the world. Maximize your asset efficiency and minimize loss!