5 Reasons Why You Should Track Fixed Assets
5 Reasons Why You Should Track Fixed Assets
Tracking fixed assets enables firms to grow like never before. Companies all over the world are utilising asset tracking technology to be more productive, save money and discover ever new horizons of sustainable growth.
While the trend towards fixed asset tracking is on the rise, you should be concerned if your business has not yet adopted or started thinking about adopting automated asset management. To help you with your decision, here are five reasons why you should track fixed assets.
Five Strong Reasons to Track Fixed Assets
- Maximise ROI on Fixed Assets
- Maximum Transparency
- Regulatory Compliance
- Reduce Maintenance Costs
- Better Decision Making
1. Maximise ROI on Fixed Assets
A fixed asset is an object you purchase for long-term use. Any piece of hardware, furniture or tool that you own and intend to use for more than a year is termed as a fixed asset and plays a crucial role in work operations.
Your fixed assets help you earn money. While it’s not easy to put a monetary value on the service an asset has provided you with, Return on Investment (ROI) aims to compare the amount of income that’s generated by a given amount of investment.
At the time of buying a fixed asset, every business owner or manager wants to extract the maximum amount of value or serviceability from it. This means utilising it at full capacity for the longest period of time. This is easy to achieve with a fixed asset register.
That’s not all. What about the ROI on fixed asset tracking technology? Hear this out: ROI on asset tracking software takes less than a year!
Take the amount of time the average employee spends trying to find and recover tools and equipment. Multiply that by the number of employees who do the same thing every day of work. Have a figure? Multiply that again with the average hourly rate for employees at your company. There’s more. What about the time spent on managing asset spreadsheets manually?
Some quick mental maths will give you the answer you’ve been looking for.
2. Maximum Transparency
How about having a clear overview of all your fixed assets at all times? When you have all your fixed assets tracked with a fixed asset register, you have a comprehensive dataset about each asset available to you at all times.
This way, you can instantly tell what assets you have, where they are, who has them and even the most intricate details like the purchase price, warranty information and much more: all that at your fingertips.
Tracking fixed assets is also a great way to deal with ghost and zombie assets. The level of transparency you can have instantly upgrades productivity, accountability among employees and enhances financial accuracy for better audits.
3. Regulatory Compliance
Governments and regulatory authorities around the world require enterprises to keep track of their assets, more importantly, IT assets. This is done primarily to promote financial integrity and personal data security so firms can prove the credibility of their operations.
For instance, GDPR compliance in the European Union requires businesses to track all assets used to collect, store or process clients’ personal data. If you’re already tracking your fixed assets, acquiring most asset management compliance certifications will be easy.
4. Reduce Maintenance Costs
A company-operated vehicle requires an engine oil change and some other maintenance. If taken care of on time, you can minimise maintenance costs. But if you fail to keep track of that vehicle’s maintenance needs, and delay maintenance for too long, you will inevitably have to pay more for maintenance since the asset has suffered a lot more damage due to a late oil change.
This is only one example. But the same is true for every other fixed asset that needs occasional maintenance. With fixed asset tracking, employees can mark an asset due for maintenance so that the managers can look into it in time and save the asset from wasteful damage.
5. Better Decision Making
Fixed asset tracking gives you valuable insights on what assets your company needs, what it doesn’t, which assets are utilised the most and which ones went underutilised. Having all this information enables you to make well-informed decisions when planning for the future.
Having a fixed asset register can save you from making duplicate purchases. In the same way, you can predict which tools or equipment will be needed at a particular time by studying asset utilisation trends.
itemit’s Fixed Asset Register
Fixed asset tracking is something for every business to do. And the best way to do it is with itemit.
itemit’s fixed asset register is a very user-friendly and advanced software solution that fulfils all your fixed asset management needs efficiently. What’s more? It’s integrated with over 2000+ apps including Google Calendar, Trello, Slack and Gmail for seamless collaboration.
Book a demo now to learn how itemit can solve your fixed asset management. For queries, contact us at firstname.lastname@example.org. You can also fill in the form below to start your own 14-day free trial.
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Not only does a fixed asset register help you keep a close eye on your assets, but it also provides you with much more than just simple asset tracking!
In this blog post, we’ll explain to you how to deploy asset tracking software, and lightly skim over which assets you should track with this software.
This blog post will teach you what assets should you track in fixed asset tracking, and help you understand and utilise your asset register to your advantage.