What fixed asset an organization owns and how much it is worth– is a mandatory information to fulfill compliance requirements in most parts of the world. It is absolutely necessary to manage fixed assets to make sure they are accurately insured, maintained regularly, their worth is gauged correctly and write-offs are done in the right manner. Any slip-up in these steps can lead to potentially punitive situations for an organization.
There are some common errors that organizations can avoid when dealing with fixed assets. One of the first things that companies need to stop doing is using outdated methods like spreadsheets of managing assets for asset management.
Spreadsheets can give inaccurate or old data that can give a distorted picture of the assets that are deployed and involves meticulous planning for flawless execution. Faulty data can lead to non-compliance or error in calculating depreciation and insurance costs.
With spreadsheets, one can never know if any unauthorized changes were made to the data resulting in inaccurate and unreliable information leading to potential issues like paying more taxes due to wrong depreciation calculations or budgeting less for maintenance.
Managing audit trails is another challenge faced by organizations using traditional methods of asset management. For geographically spread organizations keeping track of stolen or missing assets can be a costly issue.
But asset tracking management software like Asset Infinity provides easy solution to these issues by bringing all the fixed assets of an organization online – at one place. The correct value of the fixed assets, maintenance schedules and write-offs can be managed digitally without the fear of tampering.
By eliminating the common mistakes made with respect to physical/fixed asset management, organizations have the opportunity to save millions in profits and avoid any punitive damages that can occur due to human error.