Asset Management: 5 Best Practices

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Asset management is a business issue that continues to increase as your company grows. It will help to make use of these five best practices.

Asset management requires the best tools, systems, and practices. In addition, the IRS has resources available that will actually help you save money. This article is about best practices you can use, so you can stay out of trouble and in the black.

Here are five ways that you can make sure that your business’s assets stay safe. In addition, they will help you keep your assets accounted for, in compliance, and in good working order.

1. Always use the best tools for the job of asset management.

The software you use makes a big difference in your asset management. In addition, it makes a difference in how long it takes you to manage. Furthermore, using older asset tracking systems is a waste of your time. Additionally, it will be more difficult to maintain accurate asset records.

Therefore, use the best, most up-to-date tools. This will save you both time and money.

Incredibly, the majority of businesses in a recent poll said they don’t track assets. Or they said that they use manual processes to do so. Companies that still do hand counting or rely alone on spreadsheets for inventory are inviting disasters.

In addition to having a reliable system, you also need it to be scalable. Your asset management system must have the ability to grow with your company. Otherwise, you may find yourself in the awkward place of having to move between tracking systems. This can incur considerable costs. Now, companies that track assets with software are moving their data to the cloud. This keeps everyone connected and all their records synced.

Quality asset tracking systems based in the cloud should still provide you with regular or custom reports. In addition, they should give you easy audits, triggered notifications, and centralized records. Further, they should not be sacrificing the security of your data.

2. Ensure accurate depreciation tracking.

Accurate tracking of asset depreciation is vital for your asset management system. Without it, your company will pay too much for both taxes, insurance, and asset maintenance. Ideally, your asset management software should ensure an accurate calculation of depreciation. This can be done as long as your purchasing information is accurate.

Let’s talk first about maintenance. Knowing about the correct depreciation of your assets lets you make better business decisions.

Some companies keep going with assets that are past their decommission date. Others operate blindly, swapping in new assets when they’re still paying taxes on old ones. Therefore, automated software takes the guesswork out of this important, costly part of running a business.

Furthermore, financial and legal issues can also arise from maintaining your business assets in the absence of management software. You cannot afford to fail to depreciate assets appropriately. This might lead to problems with compliance. This is true especially for companies working with government grants or government funds.

3. Start asset tracking…and start right.

Establishing a solid and accurate baseline is essential. Therefore, if you begin with faulty numbers, your numbers will always be faulty.

In addition, never trust an old system. Go back to the physical inventory of your items to ensure they are all added in. Additionally, check that they have been added correctly.

Part of this involves removing “ghost” assets. These are assets that still exist on the books but are no longer company property. This could occur if the asset has been broken, stolen, or even sold. However, they may not be properly recorded in your books. This sometimes happens because of poor tracking.

Why is this an issue? For one, you’ll be paying taxes and/or insurance fees for an asset that you don’t even have. Secondly, you may think you have everything you need to complete a big upcoming order. However, you may suddenly find that you’re short a crucial asset.

Furthermore, there’s even such thing as “zombie” assets. These assets don’t appear on the books but are in your warehouse or office space. How did they get here? They got there because you don’t have a handle on your asset management practices. Now you need to spend time and resources tracing this mystery piece of equipment.

4. Streamline asset management hardware and software.

When managing your assets, you’ll need to have the correct hardware and software.

Additionally, you’ll need to ensure the two are well-integrated. They should work well together with no compatibility issues.

Your hardware is as important as the software in your system for asset management. Furthermore, you should be able to view your inventory with accuracy. This will improve your tracking overall.

Asset and inventory tracking are areas where businesses feel they can ignore technology. Automation and accountability are just two of the benefits you get when you upgrade your hardware and software in harmony.

5. Customize your fixed asset reporting.

Too often, companies rely on generic reports for fixed asset reporting. Your asset reports can and should be tailored to the industry and your company. Otherwise, it may be too difficult to glean any useful information.

Are you having trouble tracking fixed assets? It may be time to consider a better system.

It matters not if you’re an enormous corporation or a small business looking to become more efficient and cost-effective. Look no further than your asset management practices as the best place to get started on making more money.

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