Fixed Asset Tracking: What Assets Should You Track?
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.
What is a Fixed Asset Register?
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.
Why Should You Track Fixed Assets?
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.
What Assets Should I Track?
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 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.
What To Track in Fixed Asset Tracking?
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.
- 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.
Naturally, the topic of tracking assets inherently raises the question “How do I track these assets”. This is where the topic of the fixed asset register comes into play.
How Do I Begin Fixed Asset Tracking?
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 firstname.lastname@example.org. 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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