What You Should Know About Fixed Asset Management

Fixed Asset Management

Companies with large asset bases require a fixed asset framework to account for, maintain and organize their asset and equipment requirements. This is accomplished by the use of fixed asset management software. Tracking, maintaining and accounting for fixed assets creates costs savings, improves productivity and allows companies to extract additional value from the asset management lifecycle.

There are many different types of asset management software on the market. The choice depends on fulfilling the needs and requirements of the company. Larger companies will have different criteria for selection. In the case of enterprise wide integration with other company systems, the selection of the software will need to be compatible with a companies existing systems. Before making your purchase, compile a benefits/value matrix and compare vendor solutions against your individual requirements. Here are some common features that comprise a fixed asset management system.

Fixed Asset Management

Asset Tracking: Staying on top of the movements of company equipment can be a daunting task. Fixed asset tracking provides a solution. You can keep track of your assets using barcodes, GPS, RFID and digital imaging. US federal and state agencies are now required to account for all assets over a value of one hundred dollars. The Sarbanes-Oxley Act also renders corporate officers personally responsible for misrepresenting organizational performance. Whether you're tracking asset transfers between departments, accounting for inventory at remote locations or want to safeguard equipment from being stolen, fixed asset tracking software can eliminate what would otherwise be a very large manual administrative undertaking.

Maintenance:

Fixed asset management solutions help to compile and retain status reports on all company fixed assets. This includes condition reports, scheduled maintenance and the status of outstanding work orders. Staying on top of this minimizes the chance downtime will occur and adversely influence company productivity. Following regular maintenance practices also extends the lifecycle of the equipment.

Accounting:

Fixed assets usually comprise significant capital investment. The accounting module of fixed asset management software provides the mechanism for tighter purchase control, recording and reporting of cost schedules, insurance record maintenance, valuation, depreciation, purchase and disposal of fixed assets. Cradle to the grave audit and management of a companies assets empowers company decision managers to control asset registries, reduce lifecycle costs and make important purchase decisions.

Staying on top of fixed asset management and costs is a requirement for every company. Organizations that are considering a centralized system should consult case studies for verifiable evidence on the value of fixed asset management software. This will allow companies to get a better idea on the expected return on investment.

Contact Us >> Privacy Policy