Effective asset management is a fundamental part of running a successful organization but often requires excessive time and resources to achieve. This is particularly true for a company’s fixed assets (long-term, tangible assets like machinery, office equipment, facilities, vehicles, and land), where the complexity of tracking location, quantity, condition, maintenance, and depreciation status can present a real challenge.
Optimizing fixed asset management processes through smart technology and fixed asset software solutions is the best way for companies to ensure their assets are tracked accurately and efficiently. Fixed asset software solutions provide the necessary tools for companies to track assets for accounting, preventive maintenance, and theft deterrence purposes.
Here are a few of the ways that fixed asset software tools can provide a real benefit for companies during this process:
Maximize Asset Visibility
Fixed asset management requires careful and meticulous asset tracking. Organizations must determine the lifespan of tangible assets, capturing data at each stage of an object’s normal development over time. This includes costs associated with initial deployment and Construction in Progress (CIP) expenses, as well as standard depreciation from routine usage.
Fixed asset software solutions capture and manage this data, giving organizations enhanced visibility into their long-term assets’ status, security, and value. Intuitive dashboards offer high functionality, providing comprehensive overviews and detailed reports that leverage user-defined data fields and key organizational metrics. This facilitates strategic financial planning and reduces the long-term expenses generated by fixed asset management needs.
Maintain Asset Compliance
Maintaining compliance with all regulations applicable to an organization or company should always be a top priority. From tax law compliance to asset reporting requirements, satisfying the obligations inherent to fixed assets owned and used by a company is a key concern.
Many of these responsibilities will shift over time, creating the need for intimate regulatory knowledge to prevent incurring penalties. Fixed asset software ensures that an organization is always up-to-date on regulations, utilizing an internal database that includes information on thousands of rules and regulations in the US and Canada that apply to the private, public and nonprofit sectors.
Integrating this information with depreciation data also allows companies to generate compliant reports, providing accurate information on fixed assets that cannabis finance pros can directly utilize in the tax filing process.
Integrating automation into various business processes is a valuable tool for optimizing operations. This holds true for fixed asset management, particularly for organizations with sizable fixed asset holdings.
Calculating depreciation, tracking locations/quantities, scheduling maintenance – all of these issues become more pronounced the more fixed assets a company holds. Through AI and automation, fixed asset software optimizes the process of fixed asset management by reducing the need for error-prone human influence.
Through automated RFID and barcode tracking, organizations can always be aware of what assets they own and where each is located. Integrating fixed asset software solutions with a comprehensive ERP software solution will automatically expand the automated functionality, populating fixed asset accounting data into an organization’s financial ledgers. This ensures the accuracy of data, and helps provide a comprehensive view of company assets and expenses.
The Future of Fixed Asset Management
Every organization needs the right tools and resources to reach its goals and maximize profitability. In the case of asset management, fixed asset software solutions provide these tools to business leaders and accounting teams. Fixed asset software solutions are an integral component of larger ERP strategies, and including them in a comprehensive ERP software solution can be a critical step in maintaining overall success.