fixed asset register importance

The purpose of a fixed asset register is to keep your business running optimally. Without a fixed asset register, a lot of gaps may arise. In order to optimise the running of your business, it’s important to maintain an updated fixed asset register.

At a glance, a fixed asset register may look like it’s simply a list of your assets. But this is not the case.

While a maintained list of your fixed assets is important for auditing and accountability, asset register software can provide you with so many more opportunities than just seeing what you own.

 

Monitor and Optimise your KPIs

Whether it’s in terms of profits, or the performance efficiency of assets themselves, a fixed asset register will help you re-evaluate your KPIs.

Being able to monitor the performance efficiency of your assets allows you to see how effective they are and how economical. If, for example, an asset has had a long history of reactive maintenance, being able to log this in your fixed asset inventory software against the asset allows you to make better decisions in future when the same asset is repeatedly presented for repair.

One of your KPIs will be your fixed assets’ output, and so to achieve higher goals, you’ll be able to improve this output by replacing uneconomical assets.

The ability to track depreciation helps here, too. Your fixed asset inventory will help you make business-minded, practical decisions that keep everyone happy. As a result, your colleagues will benefit from well-maintained tools and equipment that work to the best of their ability. In addition, your IT asset register will accurately show which assets are in use and which are available and your business keeps the benefits of less asset downtime and optimised asset usage.

 

Predict Costs and Expenses

This is where the benefits of a fixed asset register develop from the assets themselves and become better integrated with your finances.

Expenses such as OPEX and CAPEX are so much easier to predict when you can see specifically how your fixed assets are running. 

Running a business comes with a lot of bureaucracy, of course, and a fixed asset register will help with all of this, too.

Using a fixed asset register to track and maintain information pertaining to all of your fixed assets allows you to streamline insurance and tax proceedings.

Ghost assets and zombie assets will prevent you from reaping the full rewards of tax reliefs, and could also create fines for your business. Accounting for all of your fixed assets prevents this.

Fixed asset registers are also perfect to prove ownership and responsible use of your fixed assets. Any payout is a lot simpler and doesn’t require as much wading through red tape.

 

Save on Operation

Being able to plan OPEX effectively and maintain asset use against a consistently high level allows you to find places where you can save.

More accountability means you have more predictive power, which allows you more control over your assets. With this control, you’ll be able to minimise energy costs and outputs, ensuring your business is ecologically friendly, and you’ll also be able to plan asset retrieval more effectively.

Simply knowing where your assets are based allows you to use simple algorithms for the most fuel-efficient and effective retrieval or auditing processes. Know how to travel from one asset to the next without wasting a moment of time, money, or energy.

To find out more about how a fixed asset register can help your business, or, to start tracking your assets more effectively today, you can contact us at any time or fill in the form below.

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