Is your company is also using excel for asset management? If yes, then we can tell you that you must be not happy with the output! We know excel is a traditional method utilized for asset management.
When you try to do asset management with excel, results are not effective! You must be thinking why! We will give you the answer to that question below!
The time has come when all organizations need to migrate from excel asset management to proper asset management software. We know earlier there was no other option except excel for asset management! But, not anymore!
Here Are 7 Reasons Why Excel Is Not Effective for Asset Management
Also Read: What Are the Advantages of Asset Tracking Software Over Spreadsheets?
1. Excel Is Not Meant for Asset Management
Excel was not designed for tracking assets it is built for calculating and storing data. It's no big surprise that excel is not an effective tool for asset management!
As we know the number of cell phones user is increasing rapidly. However, excel is not mobile-friendly at all. On the other hand, now almost all software comes in the mobile application form, especially for asset management purposes.
The Spreadsheet Is Error-Prone
According to the Forbes article,
“Nearly 9 out of 10 spreadsheets (88%) contain errors. A majority of these errors were from human error.”
The spreadsheet is prone to error and the main reason behind it many people have access to it, and they update it as per their knowledge. It is quite possible that one employee who has updated knowledge, update spreadsheet data but then it is changed by the second employee because this employee thinks he has more updated knowledge. As a result, data is inaccurate.
Furthermore, inaccurate data can also occur intentionally or unintentionally. There is no backtrack for finding out who made the changes so the spreadsheet is not only inaccurate, but it can be harmful to your assets and your organization.
2. Data Is Not Updated
We know that asset management needs entries about updates & it shall be done on a regularly. However, asset records are not updated regularly in excel which leads to error. For instance, these entries are very crucial for the maintenance team so that they can know what activities they had done on which asset & on which date.
If the maintenance team does not know about maintenance how the managers will know. Thus, information is not updated. Moreover, excel does not work in real-time and nowadays it is a very important factor for asset management.
3. No Attachment Facility
While using excel for asset management you cannot attach files such as photo video or any other document related to the asset. In asset management, there are a lot of documents which are vital for whole asset life such as asset purchasing document, asset maintenance-related photos or videos, etc.
These attachments come in handy while conducting the audit or performing asset maintenance. This information also useful when multiple located offices are using the data. Excel is frustrating and it contains a hyperlink that can be broken easily leading to disappointment on clicking.
Also Read: Why Managing a Fixed Asset Register Is Vital & What Are Its Benefits?
4. Everything Is Manual, Not Automatic
Every manager must have faced issues related to assets related to maintenance. For example, sometimes we all forget when we have serviced our vehicle and we mostly have only one vehicle.
Now imagine how hectic this can be for the manager or supervisor. To keep track which & when an asset was serviced because in office there are lots of assets.
When you track manually it always has some errors and these errors can be drastic from a company point of view.
Asset management software allows you to work freely and focus on other things rather than keeping in mind which asset needs maintenance. This software has the capability of sending alerts and notification, so it works as an alarm or reminder. It will remind you about asset maintenance.
5. No Actual Tracking
Excel asset management is only one-way communication! It does not allow an asset to communicate or retrieve information from assets. Neither you can keep track of assets with an excel sheet nor you will be able to know who has added information and when.
Imagine how you will track two assets who look alike and one of them needs regular service? It will be very confusing, right? How will you make sure that one technician is choosing the right asset?
With asset management software, assets are tagged also with asset tracking technology such as Barcode, RFID (Radio-frequency identification), etc. You can identify each asset separately. These tags and labels make you aware of the exact asset location that too in real-time. Hence, an asset tracking excel sheet can do more damage rather than doing good for the business.
6. Lacking in Advancement
For a long time excel has been there, that is why it has emerged as one of the traditional asset management methods. However, now there are lots of options available for asset management that are designed only for managing assets effectively.
Excel is the same as it was before no update, not advancement no new function has been developed. But asset management software has developed many new features which are very helpful for organizations such as:
- Cloud-based technology
- User-based restrictions
- Check-in & check-out
- Real-time location
- Alert & notification
- Integration with other technology
Asset maintenance is important for organizations and excel is an effective tool for offices. It is useful in many ways but not in asset management. If you want information about asset location, asset purchase date, what is the status, and where it is located you cannot rely on excel asset management!
Hence, we recommend you use asset management software rather than excel. Excel will lead to regression rather than progression.
Also Read: 7 Best Asset Management Practices for Your Business
Frequently Asked Questions (FAQs)
1. For inventory management excel is a good option or not?
Like we said excel is good for many things but when your organizations grow it will be impossible for you to track who has altered the data. But it can be used but on a small level.
2. Excel is free but asset management software is not free, is it?
No, it is not! Excel is free but it will only jeopardize your assets. On the other hand, asset management software will cost you, but it will add value to your organization. It will keep your asset safe and secure from theft or misplacement. In the long run, asset management software will be more beneficial than excel in terms of asset management.
3. What can be excel used for?
Excel is one of the most widely used tools in the world. It can be effective in various ways such as formula & calculations. It can be used for storing data and numbers etc.