How to Manage Fixed Assets Effectively

How to Manage Fixed Assets Effectively

From Zulfqar Chachar

Every organization has its fair share of fixed assets that it must manage, track, and maintain properly to avoid operational losses. This process of managing, tracking, and maintaining these assets is called fixed ass...

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Every organization has its fair share of fixed assets that it must manage, track, and maintain properly to avoid operational losses. This process of managing, tracking, and maintaining these assets is called fixed asset management. It allows organizations to keep track of their machinery, vehicles, equipment, buildings, and other assets, evaluate their state and maintain their functionality.

It is a given that during their initial days, organizations have few fixed assets to maintain. Consequently, they can manage their fixed assets by using excel spreadsheets or other manual procedures. However, as the company grows, it gets difficult to manage all assets efficiently. That is where fixed asset management software can prove beneficial.

In this blog, we will reveal the various ways to manage fixed assets effectively. Also, we would discuss the role of fixed asset management software in asset tracking. Let’s get started!

Different Asset Management Techniques

Here are the different asset management techniques that you can implement today for a more controlled asset management experience:

  • 1 Asset safekeeping

The most important part of a fixed asset management process is secure asset monitoring and supervision, which may be effectively performed by appointing a qualified person as a custodian. High-risk asset management techniques include maintaining a standard of information accuracy and taking good care of official documents and proving ownership (such as ownership of real estate).

  • 2 Tag physical assets

It can be easy to make mistakes when an entity has multiple similar assets, such as computers or hard drives, or vending machines, to maintain. This is where physical tagging can be helpful. Labeling an asset with its type and categorization is known as tagging. 

When fixed assets are marked with distinctive identifiers, such as asset IDs, tracking becomes easier. Companies should physically label each of their physical assets with serial numbers or barcodes that include the date of acquisition.

  • 3 Physical verification of assets

Even in this modern-day technological environment, it always helps to physically inspect each asset, just like in old times. This makes it easier to confirm the assets' actual existence and monitor their maintenance levels. 

Asset managers must regularly verify physical assets to ensure that fixed assets are in their optimal condition. The best asset verification procedures involve scanning physical assets, cross-referencing them with supporting documentation, and attaching pertinent invoices to asset records.

  • 4 Manage compliances and gather information

By maintaining complete resource data throughout its lifecycle and in a timely manner, it is possible to accurately comply with various legal obligations, taxes, and statutory laws and regulations. Getting all the data together in one location ensures that there is enough data and information available for the management team to be quick and knowledgeable in terms of decision-making. 

Additionally, it also ensures that multiple departments within a company can share and track similar asset data, such as depreciation, shipping, client complaints, asset locations, and reviews.

  • 5 Create SOPs

Having Standard Operating Procedures (SOPs)in place can help create a predictable and repeatable plan to manage each fixed asset across a company’s lifecycle. It’s a given that fixed assets are generally high-worth items. As a result, establishing SOPs and restricted controls would protect them. As it stands, since support and transfers are adequately managed, there is no chance of predominance.

That’s not all, as the likelihood of errors in bookkeeping and the disclosure of commercial information to shareholders would be reduced by archiving pertinent devaluation techniques and putting them into practice.

Role of Fixed Asset Management Software in Asset Tracking

Fixed asset management software helps retain asset information while keeping track of all metrics under a single roof. With fixed asset management software, you can keep track of action items while staying aware of those that require your immediate attention. You can track the many components of the process more easily with asset maintenance software.

Further, if your business is being audited, you must be prepared to disclose asset information on short notice. Your team might eventually scramble to put it together and perform poorly if you don't have the data ready. When you need to quickly find certain asset data, nothing beats the efficiency of asset management software.

The software not only saves all the data and information for you but also organizes it in a simple-to-comprehend manner. Since such data is already compiled in a database, the processes of creating reports for assets and quarterly evaluations are made simpler.

Final word

As you can see, there are multiple ways to manage fixed assets. In this regard, it always helps to have specialized fixed asset management software in your company’s tech stack. Fixed asset management software can help reduce operational risks and improve efficiency. 

At the same time, it is also crucial to choose the right software that will meet all your organizational needs. So, make sure that you make an ideal choice.

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