Fixed Asset Tracking: What Assets Should You Track?

To understand fixed asset tracking, let’s begin by defining what a fixed asset truly is. A fixed asset is a long-term asset that a company has purchased and is using for the production of its goods and services. Fixed asset tracking may involve a wide range of assets, from physical objects as large as the buildings you work in, to the furniture or the devices used in day-to-day business processes. 

Fixed assets are identified by their lack of liquidity – that is, they cannot be readily converted into cash. Neither are they sold nor are they consumed. Rather, the asset is used to manufacture goods or deliver services over the long term.

An asset register – or in this case – a fixed asset register, is a complete and detailed list of all the fixed assets owned by a company. It holds all details regarding your fixed assets in one place-making it both accessible and simple to use.

An asset register records important information such as the identification, location, assignee, and condition of the asset. Furthermore, it also records financial data, such as the cost of purchase, date of purchase, current valuation, depreciation details, and more.

A business’ fixed assets are pivotal in ensuring a smooth and efficient working process. Naturally, due to their inherent importance, it is often essential to track and manage these fixed assets. If the need arises, you have a proper analysis of the role played by these actors in the business’ fiscal income. Analysing this information can help you in ascertaining the best possible solutions.

From identifying ghost assets to making well-informed asset-related decisions, fixed asset tracking can assist you in numerous situations. In this blog post, we’ll discuss what assets you should add to your fixed asset register. We’ll also slightly delve into how these assets are to be tracked. 

This in-depth review will help you understand the importance and the specificities of tracking your fixed assets, along with their impact on your business.

To start off, an asset register is simply a means to store or record data regarding different assets. Maintaining a fixed asset register holds countless benefits for a business.

At its core, it is the way a business maintains its asset register that determines how much time and effort goes into keeping it accurate and up to date. Ideally, asset management should take the minimum amount of investment of time and resources, whilst providing you with maximum productivity. This is made possible with automated fixed asset tracking software such as itemit.

If you’re new to fixed asset tracking, you might be a little confused about which assets to track. There’s nothing to worry about as we’re here to assist you in this painstaking task of identifying which assets to track in a fixed asset register.

 We begin by listing the most important fixed assets that are to be tracked:

• Buildings: Physical structures used by your company.
• Property: Any land or different installations owned by the company.
• Hardware: Different forms of physical devices used by employees, such as computers, laptops, servers, and tablets.
• IT Software: Any software that has been purchased or leased.
• Furniture: Tables, chairs, filing cabinets, all forms of furniture are considered to be fixed assets.
• Machinery: Machines used on production lines. 
• Equipment: Any equipment employed by the business.
• Vehicles: Company-owned cars, trucks, other vehicles.

After having identified the fixed assets, another question arises, “What information do I track?” Adding excessive data proves to be only a hindrance, and a lack of sufficient data will make fixed asset tracking more difficult, acting as a hurdle while making important business decisions.

First – and arguably the most crucial point to note – is that the data should always be up-to-date. This is because the database storing assets information should always have the correct information about the location, identification of its custodian, and its last maintenance date so that this information is utilised accurately to deliver the due benefits to your business. 

We’ve compiled a list of the most important attributes of your fixed assets to be tracked within the asset management software. 

• Vendor

• Purchase Cost

• Effective Lifetime

• Serial Number (important for warranty information)

• Warranty Expiration Date

Fixed asset tracking enables you to track assets over time and monitor depreciation efficiently. Tracking the depreciation – or appreciation – can help you in making well-informed and much more suitable decisions while keeping an eye on your own financial position and the turbulent business landscape. 

It is important to note that taking depreciation into account is a crucial part of the financial process. Fortunately, itemit’s fixed asset register handles tackles this issue with ease.

Tracking your assets properly is key to success. Here are some fixed asset tracking best practices to make the process smoother.

First, identify the assets that need tracking. These include buildings, vehicles, IT equipment, and even office furniture. Each of these plays a role in your operations. Start by labelling these assets. Use barcodes, QR codes, or RFID asset tracking to monitor them in real-time.

Next, keep your asset records updated. As assets are bought, sold, or retired, make sure your system reflects these changes. Regular updates help avoid confusion and ensure accuracy.

Also, conduct periodic audits. It’s essential to verify the physical presence of assets. By doing this, you can prevent losses and correct any discrepancies in your records. A good rule of thumb is to audit your assets at least once a year.

Finally, train your team. Proper training ensures everyone understands the system. When your staff knows how to use the tracking tools, mistakes become less common, and efficiency improves.

Selecting the right tools can make all the difference. Many businesses choose the best fixed asset tracking software to handle their needs. This software automates tracking and keeps everything organised.

But which tool is right for you? Start by evaluating your assets. For instance, larger companies with many moving parts may benefit from RFID asset tracking. This technology provides real-time updates on your asset’s location. It’s fast and reduces manual input. With itemit, you can easily access this technology for your business.

Smaller businesses might find barcode or QR code systems more suitable. These options are cost-effective and still get the job done.

Look for a tool that fits your budget and business size. Also, consider user-friendliness. Your team will need to use it daily, so a simple, intuitive system works best.

Once you have the right tool, you’ll see improvements in how you manage your assets. You’ll gain better control and insight, leading to fewer losses and more informed decisions.

Whether you already own an asset register or wish to shift to using a better fixed asset register to achieve your company’s financial goals, itemit can fulfil all of your needs. It’s an off-the-shelf solution that’s easy to use, time-saving, and economical, making fixed asset tracking a cakewalk. 

To learn more about how itemit can help you track your fixed assets, feel free to reach out to us at team@itemit.com. You can also try out itemit’s unique features for yourself and get a hands-on user experience with a 14-day free trial. Fill in the form below to start!

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