Introduction to Fixed Asset ManagementPosted by: Ashton Coaldrake | Posted on: May 14, 2019
There are obvious benefits of implementing and maintaining a record and control over assets. Savings can be obtained from being able to both see current asset deployment and thereby maximizing their use.
Software asset management will reduce unauthorized use or misappropriation and ensure employees leaving firm return assets under their control. In some cases, a system is mandated by government regulations, terms of lending, public grant terms, insurance terms, etc.
One person can maintain and manage all fixed assets of a business if they have software to assist them. Computer systems and software available reduce complexity, save time and prevent mistakes. Why use an asset management software program?
While paper and pencil methods can be used, software programs assist in the recording, maintenance, and auditing of assets. This saves time and gives a clearer picture of assets since sorting and viewing in different ways is quick and easy.
The most basic 'solution' would be using a spreadsheet program such as Excel. Even after migrating to software specifically designed for asset management there are times that a spreadsheet program may continue to be useful.
What is an Asset?
What you call an asset often depends upon your business activities. The first thing that comes to mind is fixed assets such as computers, production equipment, office furnishings, etc. You might even wish to consider employees as assets or even service and maintenance contracts. A flexible asset management software program can provide a way to track many things most of us would not consider being assets.
What are my first steps in setting up a system or 'solution'?
1: Decide what assets will be managed.
The more assets the more work in setting up your system. Limiting assets to only those over a certain dollar value is a good idea.
2: Deciding what characteristics of assets it is important to record within the software.
Your choices will not only have an effect upon the amount of work required but also the extent to which you can manipulate and view asset information by sorting on asset information field or combination of fields.