How Does Fixed Asset Management Module Help the Business Reach its Heights?

Fixed assets are the main source of your business success and they should be managed with proper care. These fixed assets are heavy machinery, vehicles, real estate, and office equipment. They help the company in increasing its revenue. That’s why companies invest high amounts in these fixed assets. With these assets, you can fulfill your customer needs, generate high revenue, and gain some other benefits.  They are associated with your business success so they must be managed carefully. The fixed asset management module helps you maximize Efficiency, minimize accounting errors, and keep track of all the assets.

This blog will help you find all the details of the fixed asset management module, its features, and benefits for your company.

 

Fixed Asset & Fixed Asset Management 

Mainly business assets have two types, current and non-current assets. Non-current assets us also known as fixed assets. It can not be converted into cash within or less than one year. Furthermore, it has a useful life span of one year. This asset is mainly used to generate revenue. While the current asset can be converted into cash just like inventory or accounts receivable. Current assets include Copyrights, intellectual capital, patents, and trademarks. Computers, heavy machinery, vehicles, and real estate are all Fixed assets. 

The whole process of keeping the record of assets from their acquisition to their disposal is a Fixed asset management process. It includes both operational and accounting processes.  The operational process aims to optimize fixed asset usage to increase income. This process includes a register that has the details of fixed assets, the date when they were taken into service, and their useful life. Fixed Asset Management Module performs all these core functions to enhance business productivity. 

 

Why is Fixed Asset Management Important?

 It is considered the most important investment of any company that can generate much revenue. Therefore it is necessary to manage fixed assets to generate high revenue for your business success. You can easily reduce the maintenance cost, risk of equipment failures, risks of accidents, and much more by managing the fixed assets effectively. By this, you can also reap a lot of benefits.  The benefits can be

•   Increased profitability by maximizing income
•   Low chances of compliance issues 
• Greater customer satisfaction 
• No repair or maintenance costs 
• Higher employment engagement 

 

Features of Fixed Asset Management Module 

This software can automate all the financial operations such as depreciation, by integrating with the accounting system of your company. With this software, you can keep a lifetime track of your assets from acquisition to disposal. 

Some key features of the fixed asset management module are as follows

1- Calculates Depreciation Automatically 

Fixed Asset software allows companies to choose the suitable depreciation and calculation method so that they can calculate depreciation automatically throughout the expected lifetime. 

2- Dashboards and Reports

This software also provides dashboards to monitor the key metrics and manage customized reporting.

3- Log all Assets

This module contains a central register that has the complete record of all the fixed assets. The register also has accurate log, asset IDs, tracking details, and the barcode. This helps you in finding any lost data.

4- Tracks Asset Disposal

Furthermore, this software tracks the asset disposal too along with the dates. This also contains detailed information on whether the asset is retired, sold, or scrapped after being returned from disposal.

5- Tracks Asset Transactions 

Fixed Asset Management Module keeps records of all the assets over their life service. The tracking details include the original price of the assets, acquisition date, installation, transportation cost, estimated life, date of first use, and expected and actual maintenance costs.

 

Benefits of Fixed Asset Management Module 

Not only the large but the small companies can also get several benefits by using fixed asset management modules as it helps them avoid errors, make most assets, and support success. The key benefits you can get from fixed asset software are mentioned below:

1- Automating Manual Process

By using a fixed asset module, you can automate error-prone and time-consuming tasks such as accounting and depreciation calculation. It saves time and also enhances the accuracy. However, it also reduces the chances of errors while recording disposals.

2- Improved Compliance

You can maintain and improve compliance with the health and safety measures, legal requirements, and accounting standards of a company by having time maintenance of assets, and their replacement, and keeping accurate records. 

3- More Informed Decisions 

With this software, you can see the full range of assets of a company, their cost, and their life service in just one glance. This helps you in making faster better decisions about the deployment, disposal, and acquisition of the fixed assets.

4- Eliminating Ghosts Assets

Ghost assets are unusable assets of a company that are shown in the company’s record but are no longer needed. However, the company has to pay its taxes if they rely on manual spreadsheets for tracking purposes. In this case, fixed management modules reduce the problem by recording each step in the asset’s life cycle.

5- Better Business Insights

With this software, companies can identify emerging issues and trends more easily and quickly. This is because of the leading solutions provided by the fixed asset management module.

 

How to Choose the Best Fixed Asset Management Module?

• Firstly understand what part of your business needs the utmost attention. This helps you in choosing the software that can solve your issues quickly.
• The second step should be examining the level of automation you need from that particular software. Whether you want to send emails to customers or schedule monthly reports. It should be the question.
• Check the potential of the software and whether it can be integrated with other business software or not. 
• Analyze your budget considerations and estimate the profit and loss that you are expecting from it in the future.

 

Conclusion

Fixed Asset Management module can make a significant amount of contribution to your business success. Your company can get the most out of its assets with minimal effort and can also increase income and enhance customer satisfaction. With this module, you can schedule monthly depreciation calculations automatically, automate lease payments, ensure compliance, eliminate ghost assets, and much more. 

cherryBerry ERP’s fixed asset management module solution helps companies manage their entire fixed assets over a lifetime from acquisition to disposal. It helps your business reach new heights. Contact us if you also want to make high endeavors.