Software for managing fixed assets is an essential tool for companies of all sizes and in all sectors. Effective asset management is more important than ever due to the growing complexity of fixed assets. Without effective management, businesses may encounter a variety of issues, including higher maintenance costs, shorter asset lifespans, and noncompliance with regulatory requirements. Software for fixed asset management is useful in this situation.
Software for managing fixed assets can function independently or as a component of a larger enterprise resource planning (ERP) system. The software is made to make it easier for businesses to manage their fixed assets and automate asset tracking procedures. In this article, we’ll examine the key components of fixed asset management software in more detail and explain why they’re crucial.
The cornerstone of fixed asset management is asset tracking. It entails compiling and keeping track of every asset that a business has. This includes details like the asset’s location, current value, and the date and cost of its purchase. Asset tracking, which provides accurate and current information about assets, is crucial for efficient asset management.
Software for fixed assets should make asset tracking simple. Several techniques, including barcode scanning, RFID tagging, and GPS tracking, can be used to accomplish this. Attaching a barcode to an item and using a barcode reader to scan it in order to record information is known as “barcode scanning.” Radio waves are used in RFID tagging to identify and track assets. To track an asset’s location using GPS, a GPS device is fastened to the asset.
Additionally, a centralized database with all asset information should be offered by the software. As a result, asset information is simple to access from anywhere within the company. In order to record data specific to assets, the software should also permit the creation of custom fields.
Calculating an asset’s deterioration in value over time is a key component of depreciation management. For tax and financial reporting purposes, this is crucial. Multiple depreciation techniques should be supported by the software, which should also be able to generate precise depreciation schedules.
The three most popular depreciation strategies are units-of-production, accelerated, and straight-line. In straight-line depreciation, the annual depreciation expense is calculated by dividing the asset’s cost by its useful life. Higher depreciation costs in the early years of an asset’s life are possible thanks to accelerated depreciation methods like double-declining balance and sum-of-years’ digits. Based on how the asset is used, units-of-production depreciation determines the depreciation expense.
Depreciation methods should be adaptable in the software to meet the unique requirements of the organization. It should also be able to accommodate various depreciation schedules, including monthly, quarterly, and yearly.
Each asset’s maintenance schedule is created and managed as part of maintenance scheduling. This makes it easier for businesses to maintain their assets properly and extend their useful lives. Based on the type, age, and usage of the asset, the software should enable the development of personalized maintenance schedules.
All maintenance tasks, such as inspections, repairs, and replacements, should be included in the maintenance schedule. The software should also send alerts for impending maintenance tasks, such as reminders for planned maintenance or warnings for urgent maintenance requirements.
Additionally, the software should enable the creation of work orders for maintenance tasks. Work orders contain comprehensive information about the maintenance procedure, including the task that needs to be completed, the assets involved, and the materials and labor that are required. Work orders facilitate the maintenance process and guarantee that all maintenance tasks are carried out effectively and efficiently.
Software for managing fixed assets must include reporting. It entails producing reports on a range of asset management topics, including asset value, depreciation, maintenance expenses, and disposal. Businesses should be able to analyze the performance of their assets and make wise decisions using the software, which should offer a variety of customizable reports.
Reports on asset values give details about the current worth of assets, such as their book value, market value, or replacement value. These reports assist companies in determining the value of their assets and in making decisions regarding the acquisition or disposal of assets.
Depreciation reports give details on how assets depreciate over time. These studies assist companies in determining the financial effects of asset depreciation on their bottom line and future asset acquisition decisions.
Reports on maintenance activities on assets give information on those activities. These studies aid companies in figuring out how much it costs to maintain their assets and where they can cut costs.
Disposal reports give details about how assets were disposed of, such as the method used, the sales price, or the cost of disposal. These studies aid companies in comprehending the financial effects of asset disposal and informing future asset acquisition decisions.
Software for managing fixed assets should offer a range of reporting options, including dashboards, pre-defined reports, and ad-hoc reports. Ad-hoc reports give users the ability to design tailored reports based on particular specifications, like asset type or location. Standard reports covering frequently used metrics are provided by predefined reports. Dashboards give important asset management metrics, like asset value or maintenance costs, a visual representation.
Software for managing fixed assets should be integrated with other business systems like accounting, purchasing, and inventory control. Integration eliminates the need for manual data entry and increases data accuracy by enabling seamless data exchange between systems.
For instance, integration with accounting systems enables the general ledger to automatically record asset purchases, depreciation, and disposal. When new assets are acquired, asset records can be automatically created thanks to integration with procurement systems. Integrating inventory management systems enables precise tracking of asset availability and location.
Software for managing fixed assets should be mobile-friendly, enabling users to access asset data and manage assets from their mobile devices. Mobile accessibility boosts efficiency and flexibility by enabling users to carry out asset management tasks from any location.
For instance, maintenance technicians can access work orders and instantly update the status of maintenance activities using mobile devices. Mobile devices can be used by asset managers to access asset data and conduct audits or inspections while on the go.
For businesses to effectively manage their fixed assets, fixed asset management software is an essential tool. It has functions like asset management, depreciation control, scheduling of maintenance, reporting, integration, and mobile compatibility. Businesses can lower the risk of asset loss, enhance asset performance, and streamline their asset management procedures by using fixed asset management software. Effective asset management is more important than ever due to the complexity of fixed assets, and fixed asset management software is a vital tool for achieving effective asset management.