We can all relate to how displeasing it is to replace missing items or repair damaged assets caused by negligence. So, as an organization keeping your assets safe should be one of your business priorities. Also, because your staff uses these assets constantly, there are tendencies for misplacement and depreciation. However, with proper management of these physical assets, you can use every fixed asset to maximum capacity. This week we will be sharing asset management tips for effective management of your fixed assets.
The very first step is to get knowledge of the assets you have. Then make a list of them all so as not to leave anything out. They could get divided into categories like furniture, IT Equipment, Company vehicles, Softwares, etc. This data can then get uploaded to a balance sheet.
Once you have your assets listed, you must determine their value, and you can do this by finding out the market value of those physical assets, even take it a step further by looking for similar products of the same age and how much they are worth. While this is not to give you their exact worth, you will get an estimated figure of their worth. This estimate can come in handy in the future.
Another tip is to know the life cycle of your assets. Right from purchase to disposal, estimate how long you can use each of your fixed assets. Doing this will make it easy for you to decide the best time to perform maintenance. By having estimates of the life cycle of your assets, making purchases becomes more calculative and wiser in the long run. For example, if the current touchscreen system you have lasted less time than expected, the next time you purchase touchscreen systems, opt for durable touchscreen systems that promise a better usage period than those your business currently uses.
You have other equally important things in your business to think about, and trying to control every aspect will only leave you burnt out. Therefore, you must appoint a trusted person or a carefully selected team who would become responsible for your assets. Depending on the size of your business, you might need one or more hands in keeping track. If it is a considerably small business, then one or two persons can manage the assets. However, for large organizations, a whole team is appointed to maintain and manage the assets.
Because these assets are crucial to the operation of your business, insuring them will always be a good call. Business property insurance tends to cover replacements of equipment stolen or ruined due to acts of nature (fire, flood, etc.). And if you use business vehicles, there is a need for auto insurance. Though these are additional costs to your already tight budget, consider how you would fare without insurance if something went wrong. It is better to be safe than sorry.
Tracking your asset only works when you have the correct data. It is necessary to understand your assets’ values, life cycles, and current statuses. Getting all of this information into a system might seem like a lot of effort, but it will save you a lot of time and money later. The great thing about having an asset tracking database is that when you obtain more assets in the future, you will input the information about these assets with little time and effort.
Another salient factor when it comes to asset management is the calculation of depreciation of your assets. If you do not track asset depreciation accurately, you may not know that several items are outdated but still used by your employees, which will slow down their work. Having an idea of when various assets depreciate will enable you to make informed, timely decisions about when to decommission older stock and invest in new items. You do not want to hold onto devices for so long that they become liabilities, wasting employee time and costing money. Equivalently, you do not want to buy new assets too soon. Hence, regular depreciation tracking is necessary for knowing items that should not be used anymore and figure out the best time to make purchases.
Although people still rely on basic spreadsheets or hand counts or do not even bother altogether, getting asset management software to manage your assets is worthwhile. They will save you time, money, and energy over the long run. Thanks to the fast-paced society we live in now, technology is on a whole new level with many different options available with various features and price points. Not to mention that asset management also tends to be more accurate and reliable than humans prone to making errors. With options for systems that work in the cloud, asset data can be accessed by people all over the company when needed, and the records stay synced. Software tools are also remarkable at enabling you to analyze and print reports, whether standard or customized. In addition, they can trigger notifications when appropriate, handle audits, and keep records in a centralized spot while also maintaining security every step of the way.
Knowing the above asset management tips will surely help you when shopping for efficient asset management software. For the most effective asset management, we at POS Shop can help you enable remote access control. This way, you can get updates of your assets from any location to help workers with IT issues and to investigate any software problems that need rectifying. Call +23407007677467 to schedule a free demo.