5 Asset Management Best Practices

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Managing fixed assets is a challenge that grows exponentially as your company grows. If you’ve been charged with tracking fixed assets, you’ll find that you need to be exceptionally conscientious and dedicated. As you undoubtedly know, any challenges in fixed asset tracking could potentially lead to significant financial loss for your company and increased administrative burden on your part.

1. Always Use the Best Tools for the Job

The software you use makes quite a bit of a difference in the accuracy of your asset management and how long it takes you to manage. Using older or legacy asset tracking systems will waste your time; it will be more difficult to maintain accurate asset records. Using the best tools will save you both time and money.

In addition to having a reliable system, you also need it to be scalable. Your asset management system must have the ability to grow with your company; otherwise, you may find yourself in the awkward and delicate condition of having to move between asset tracking systems – with considerable cost.

darts2. Ensure Accurate Depreciation Tracking

Without accurate tracking of asset depreciation, your company will pay too much for both taxes and insurance. Ideally, your asset management software should ensure accurate calculation of depreciation as long as your purchasing information is accurate.

Even minor mistakes in asset depreciation could be quite costly. Additionally, failing to depreciate assets appropriately could lead to violations in regulatory compliance. This is especially true for companies that work with government funds or grants. Even when companies are not required to accurately report fixed assets to the government, they may have a duty towards board members and investors. Being unable to accurately track depreciation of fixed assets could lead to skepticism regarding the accuracy of the books as a whole.

3. Start Your Tracking Out Right

Establishing a solid and accurate baseline is essential; if you begin with faulty numbers, your numbers will always be faulty. Never trust an old system. Go back to the physical inventory of your items to ensure they have all been cataloged and that they have been cataloged correctly.

Part of this involves removing “ghost” assets – which are assets that still exist on the books but are no longer company property. This could occur if the asset has been broken, stolen, or even sold but not properly recorded in your books. This will often occur due to improper tracking, either because the system is not accurate or because the procedures are not diligent enough.

4. Streamline Your Hardware and Software

When managing your assets, you’ll need to have both the correct hardware and software, and you’ll need to ensure the two are well-integrated. They should work well in tandem without any compatibility issues.

Your hardware is just as important as the software component within your asset management system. You should be able to easily scan items with accuracy; this will improve your tracking overall.

Newspapers5. Customize Your Fixed Asset Reporting

Too often, companies rely on generic, boilerplate reports for their fixed asset reporting. Your schedule of fixed assets should be tailored both to your industry and your company; otherwise, it may be too difficult to glean any relevant and important information.

If you’re having issues tracking your fixed assets, it may be time to consider a better system. Wasp Barcode Technologies offers comprehensive hardware and software inventory tracking systems that can be integrated into or supplant existing asset management tracking. Contact us today to find out more about how our products can help you.

How are you tracking your fixed assets today?  Tell us in the comments.

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Brian Sutter

Brian Sutter

Director of Marketing at Wasp Barcode
Brian Sutter is the Director of Marketing at Wasp, responsible for the development and execution of the company’s marketing strategy. His role encompasses brand management, direct and channel marketing, public relations, advertising, and social media. He also writes and speaks on topics related to helping small business owners grow their business and improve operational efficiency.
Brian Sutter
Brian Sutter