How To Eliminate Ghost Assets With An Asset Register

How To Eliminate Ghost Assets With An Asset Register

Are your assets ghosting you? Do you really know which of your assets are available and functioning? Incomplete and inaccurate records can make you a victim of ghost assets. Ghost assets are defined as any asset that is lost, stolen or unusable but is still shown as active on your fixed asset register. Ghost assets risk the integrity of your business and pose significant financial implications.

Why Are Ghost Assets a Problem?

Asset registers are an important tool for representing a company’s investments. If an asset register is haunted by a number of ghost assets then this can have a significant effect on financial assessments. Ghost assets can mislead companies to either over or undervalue their set of assets. This can result in overpaying taxes, higher insurance premiums, inaccurate fixed asset reporting, and an inability to forecast accurately. All of this can affect regulatory compliance and place companies in a jeopardous position. 

 

Ghost assets also limit the productivity of a company. If your team believes an asset exists when it doesn’t then this can create operational bottlenecks. Alternatively, if an asset does exist but is out of action due disrepair then this can create delays and potentially increased expenses.

How To Eliminate Ghost Assets

Incomplete and inaccurate fixed asset registers lead to ghost assets. To eliminate them it is essential that an asset register is maintained and updated. Of course, this is often easier said than done but asset tracking software can alleviate the burden of manually updating your asset register. Eliminating ghost assets in your organisation can be broken down into three simple steps: 

 

  1. Create an Online Asset Register
  2. Tag and Track Your Assets 
  3. Equip Your Team with the Right Tools and Processes

  1. Create an Online Asset Register

The first step you need to take is to create an online asset register. Asset registers are a complete record of all your assets contained within one centralised system. With asset tracking software, all the data associated with your individual assets is tracked and maintained online, allowing you to finally move away from tiresome spreadsheets.

 

An integrated asset management platform can help to prevent the disconnect between the various areas of a company. Establishing a centralised asset register that is accessible to all areas from a single dashboard creates a more cohesive workforce and that can collaborate with ease.

2. Tag and Track Your Assets

For an asset register to work effectively it requires up-to-date information on the status and location of the company’s assets. Tagging and tracking assets significantly improves the accuracy of an asset register. Each time an asset is scanned, its location is updated in the online register. Each asset is assigned a unique identifier that means you can track it throughout its entire lifecycle, from procurement to depreciation. Within an asset’s digital profile you can even set maintenance reminders that help to extend its lifespan. 

3. Equip Your Team with the Right Tools and Processes

Eliminating ghost assets ultimately rests with you and your team. Equip your team with the right tools and establish best practices. Putting portable tag scanners in the hands of the right people can greatly speed up the asset tracking process. Using itemit’s check-in and check-out functionality your team can create processes that ensure your assets are always accounted for. Taking regular audits and following regular maintenance schedules will also prevent the appearance of ghost assets.

itemit’s Asset Register Solutions

itemit offers a simple, cloud-based solution to all your asset tracking needs. With a fully-equipped suite of helpful features from a centralised dashboard to  check-in and check-out functionality, you can set up your own asset register in just a few clicks. An asset register provides your business with information it needs to eliminate ghost assets. Tracking and recording each change that occurs during an asset’s lifetime gives you the confidence and control you need to take your business to the next level. 

To find out more about itemit’s equipment loan software and how it will help you, you can contact our team at team@itemit.com that’s always happy to answer your queries. You can also fill in the form below to start your 14-day free trial.

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