Everything You Need to Know About Asset Management
Any assets that are valuable to a business, whether they’re used internally or hired out, need to be tracked and monitored effectively. Without an asset management system, this becomes a very big task, very quickly.
What is an asset management system?
An asset management system is the way companies track and manage all of their assets, whether physical or intangible.
When talking about an asset management system, it’ll be most likely that software is being referred to. Technically, spreadsheets can be used as an asset management system, but spreadsheets become out of date very quickly and are tedious to manage, not to mention dull.
What is an asset?
Usually, an asset will be a physical, tangible thing. It could be tools, equipment, machinery, Personal Protective Equipment (PPE), but assets can also be intangible, such as data on the cloud or software.
Fixed assets are the tangible or intangible assets that are used to generate revenue within a business. Even a sole trader with just a laptop at home has a set of fixed assets. Their laptop is making them money, and they can get tax breaks on rent as their place of work is their home.
An office, on the other hand, will have more fixed assets and companies that work in the field will have many more, as each tool down to the smallest screw is classed as an asset to the business. In this case, asset management is still required.
So, fixed physical assets are defined as any type of physical item that a business owns that has economic, exchange, or commercial value — physical assets usually property, inventory, or equipment.
Intangible fixed assets are the same, only not physical items. They are, therefore, data, software, Operating Systems, websites, and so on.
The Role of an Asset Management System in your Business
If you’re in an office, I’m going to help you out. Posture is important, as is exercising your neck.
So, look around you. How many physical items can you see that people use for your business? If you’re an app company, there may be tester phones littered around. How many laptops are around you (can you hear Claire typing? I think she’s just had her nails done). How many telephones there are, how many envelopes, how much paper, printers, photocopiers, and so on.
That’s the role of an asset management system in your business. Imagine if everything in your office was unaccounted for or if the data surrounding it was constantly out of date.
With an effective asset management solution, you’ll be able to increase the accountability and transparency that owning multiple assets requires. Tracking assets means that you’ll be able to assign assets to users and add relevant information to see the effectivity each asset is running at.
What to look for when you want to manage your assets
A great asset management system comes with the ability to set up barcodes, QR codes, or RFID asset tags on the physical items that a business uses. These can then be scanned into the software and then categorised based on the specific asset. A digital profile is then linked to the physical asset through the use of these tags.
Other features that asset management software will help a business with include:
- Tracking the warranties and additional financial information associated with assets
- The ability to attach documentation to assets on a digital system
- Custom defined fields, such as funding sources and specific accounts the asset should is linked to
- The ability to manage issues such as damage or asset downtime
- The ability to minimise physical asset loss by increasing accountability
- The ability to better predict profits by closely tracking how well assets are working as well as ensuring necessary tax breaks are received
These systems allow a business to track where assets are at any given moment. Employees can check assets out and back in. Reports can then be generated to help management understand which assets are currently with which employees.
Furthermore, asset management systems are also useful for scheduling maintenance on equipment that has been purchased. The system will also assist with tracking any repairs that are needed should the worst happen, minimising asset downtime.
With itemit, you’ll be able to track and manage all of your assets with the use of our bespoke asset tags and powerful functionality. Contact us today to find out more about how you can use itemit as your asset management system.
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