Fixed Assets are surely a very integral part of any organisation. But the real question arises when you ask “is it really important?”
The answer is YES! It is extremely important to manage your fixed assets efficiently! Why? Well, here are 4 reasons why-
– Tracking Fixed Assets
The most common problem organisations face while managing fixed assets is tracking them. Be it the life cycle of an asset or the current holder. It is important for an organisation to know where its assets are. The most effective way of tracking assets is implementation of Fixed Asset Management System. There are various ways of tracking fixed assets but the most popular way is to assign them a barcode/ QR code or an RFID tag. This makes tracking of assets way more convenient.
– IT Asset Tracking
An FAMS helps an organisation manage it’s IT Infrastructure by keeping a date sheet and reminding and/or notifying about renewals/ expiry/ service dues, by Helping them track the IT Assets and by assisting in allocating the proper asset to the proper employee. If looked at from a different perspective, IT Assets are the core of an organisation. Be it laptops, desktops or just anti-virus software, IT Assets need to be tracked and managed like actual fixed assets. Here are 4 ways in which a Good FAMS will help you manage your IT Assets.
– Categorisation of Assets
With an efficient Fixed asset management system, you can create asset categories as per your convenience. Asset categories may include simple, general categories like IT Assets, Furniture, Machinery, etc. Besides this, you can also create more specific categories like laptops, Air Conditioners, etc. You can also create sub categories like One Ton Air Conditioner, Half Ton Air Conditioner, etc! An FAMS for sure, will make asset tracking much easier for you!
– Asset Disposal
Asset disposal is the elimination of an asset from a company’s records, typically by selling or scrapping it. These are often long-term assets that contributed to generating profits, such as machinery, technology or company vehicles. Asset disposal can be mistaken very easily by not recording the correct value or by miscalculating the scrap value. FAMS helps you in recording depreciation on a regular basis, being automated, an FAMS provides accurate calculation regardless of the method of calculation (unless you switch in the course of the lifetime of the asset of course). Having access to the lifecycle of an asset also helps one in proper calculation of the disposal value and the authentication of the depreciation applied over the lifetime.
In conclusion, having an Asset Management system is extremely necessary in an organisation. You know what else is necessary? A good Fixed Asset Management System. Here are 4 advantages of an Asset Management Software & How to choose a FAMS?