How A Fixed Asset Register Saves Your Business Time And Money

If you want to enhance your company’s efficiency, reduce operational costs and maximise profits, a robust fixed asset management system lies at the core of it all. Read on to learn how keeping a fixed asset register will save your business time and money.

In accounting terms, they fall under the umbrella of noncurrent assets and are items that a company intends to use for more than a year at the time of purchase. Tangible objects like laptops, furniture, vehicles, and buildings are some examples of fixed assets.

A special consideration about these assets, which is also the reason why they need to be tracked in a separate fixed asset register, is that they lose value over time. Although this is not true for all fixed assets, it still is a major characteristic that highlights the need for recording the assets’ value depreciation as they age. This can only be done with effective fixed asset management.

With seamless integrations, the system behind fixed asset management software helps it automatically update asset details throughout the database. As a result, high accuracy and accountability enable a business to save the most time and money. Let’s get into the details.

A lot of companies end up stacking shelves upon shelves of similar hardware or other assets. This happens just because they are unable to cross-check what they need and what they don’t at the time of purchase.

On the contrary, with all fixed assets logged on to the register, you have a clear overview of what your business has and what it doesn’t. This helps you avoid duplicate purchases. Moreover, logging assets with important information like price of purchase, warranty info and maintenance requirements help you get the most of each asset.

Outdated fixed asset records can lead to a range of problems, all of which ultimately lead to a loss of time and money. For instance, ghost and zombie assets, an outcome of below-par fixed asset management, can lead to higher insurance premiums and extra tax-related fines.

You will inevitably struggle to record the fall in fixed assets’ value if you don’t use the best asset tracking software. This leads to you paying exorbitant insurance premiums and taxes on assets that are no longer in use. Invest in a good asset management system and save yourself a lot of money!

However, using fixed asset management software brings transparency to every nook and cranny of asset management. The ability to assign assets to employees brings accountability to the table. And when every employee can access and record asset details, transparency is manifest.

To find out more about how itemit can save your business time and money, you can contact the team at team@itemit.com. You can also fill in the form below to start your 14-day free trial.