8 Tips for Creating a Flawless Fixed Asset Management System

Fixed assets are good prized assets that have a useful life of more than one year. These assets are valuable capital investments that are crucial for generating revenue by supporting production procedures. Hence, it is crucial to register and monitor fixed assets to uphold precise records consistently. To maintain efficient corporate operations, it is crucial to ensure that fixed assets are consistently in optimal condition, with minimal periods of inactivity. Implementing a fixed asset management method allows firms to monitor the usage of assets and accurately determine their depreciation, therefore maximising their performance and lifespan. 

Significance of Fixed Asset Management: 

Business research indicates that a significant majority of organisations, namely 56%, fail to effectively oversee the complete lifespan of their assets. Furthermore, over 60% of firms lack the essential information required to effectively manage assets from the moment of acquisition to disposal. Insufficient essential data might pose difficulties for organisations in accurately conducting financial reporting on their assets. Therefore, companies must implement a fixed asset management system to improve the performance of their fixed assets.
Implementing a fixed asset management system can enhance organisational success, promote transparency, and reduce expenses for large organisations. Here are several advantages of overseeing fixed assets for your organisation: 

Precise Documentation of Assets:  

Fixed assets are expensive and, if stolen, can be time-consuming to replace. Fixed asset management allows organisations to effectively monitor and maintain a record of all the assets they possess to address such concerns. Through the implementation of a management procedure, organisations may effectively oversee the ownership of assets, thereby enhancing transparency. If any items are lost, you can easily use the system to retrieve information and conduct an inquiry. 

Minimise Downtime of the Equipment:  

Advanced fixed asset management software can help reduce the downtime of any machinery. If there is an unforeseen malfunction in any equipment or machinery part, it can be a lengthy process to restore the functionality of fixed assets, such as heavy machinery.
To mitigate unforeseen periods of inactivity, it is advisable to adopt maintenance methods for tangible assets. Preventive maintenance sessions involve regular examinations aimed at minimising the risk of sudden breakdowns that might result in significant expenses. 

Simplified Adherence to Regulations:  

Organisations must adhere to several regulations and requirements while managing high-value assets. One straightforward method to ensure compliance is by promptly paying taxes for all relevant assets. This can only be accomplished when you possess a precise depiction of the worth of your immovable possessions. 

Efficient Acquisition of Assets:  

Fixed assets are substantial capital investments that are not easily replaceable or upgradable. Acquiring superfluous assets results in the allocation of resources that could have been utilised in other areas. An efficient fixed asset management system that meticulously records all pertinent information about your assets, starting from the purchase date until their disposal, enabling you to effectively monitor the usable lifespan of each asset.
Through the implementation of a dependable management procedure, firms can record purchase orders when older assets are disposed of or sold at a salvage value, leading to streamlined procurement cycles. 

Why Companies Should Implement Fixed Asset Management System?

There are four compelling reasons why you should implement automation for fixed asset management.
Traditional manual spreadsheets utilised for tracking fixed assets can provide challenges in terms of accessibility, ultimately leading to decreased productivity. Studies indicate that approximately 80% of employees spend an average of 30 minutes each day attempting to access information. By utilising an automated system, firms may effectively minimise anomalies in asset management, hence enhancing workflow efficiency. Automated fixed management solutions offer several advantages: 

Asset Tracking using Barcodes:  

By utilising an automated solution, organisations can produce barcode tags for all of their assets. The adoption of these distinct identifiers enables the monitoring of permanent assets during their entire existence. This accelerates the inventory creation process by eliminating the need for manual entry of asset details.
The barcode label may be effortlessly read, enabling the swift retrieval of all pertinent asset data from the program in a matter of seconds. This system guarantees that asset data is promptly recorded and readily available to everyone, hence saving time and effort. 

Automated computation of depreciation: 

An automated software designed for fixed asset tracking will automatically compute depreciation and salvage value. Precise depreciation calculations facilitate the assessment of an asset’s value at any certain moment. Employees are not required to manually search for purchase expenses and choose depreciation methods each time enterprises need to submit taxes.
This also aids them in ascertaining the point at which an asset has reached its full depreciation and is prepared for disposal. 

Facility Management: 

A software system logs each instance when an employee borrows a fixed asset for utilisation. You can also record additional information, such as the specific location of use, the period, and the condition. Having access to such information can assist firms in reducing the likelihood of misplacement and loss.
An automated system for custody management enhances transparency and facilitates the validation of audits by providing precise and accurate information.

 
Real-time Notifications: 

Operational procedures might be negatively affected if teams are not notified about downtime in fixed assets. Utilising automated fixed asset management allows you to establish alerts and notifications regarding crucial occurrences. You can generate a notification every time the excavator is scheduled for maintenance. In this manner, personnel can make arrangements for other solutions to ensure continued processes. 

Conclusion: 

 

Managing fixed assets for your company is as important as managing other resources. Therefore, your company needs robust fixed asset management software with all the latest features.
The fixed asset register provided by CherryBerry ERP is the most user-friendly and technologically advanced fixed asset management software available on the market. Contact us today for a free consultation session or schedule a demonstration now to discover how CherryBerry ERP can effectively address your fixed asset management needs. Do not delay anymore, it is the right time to manage your fixed assets and get the best out of them.