Tracking and managing assets inventory is no easy job – and yet, it’s a pressing one for many reasons. Whether you’re a business owner, or you’re an employee simply charged with the responsible management of your company’s assets inventory, the goal is the same. Your job is to minimize waste and protect the bottom line. Every dollar matters.
The Benefits You Haven’t Considered
When you think of assets inventory management, your first thought is probably tracking your assets – knowing where they are at any given time. While that’s one of the primary roles of assets inventory management, it’s by no means the only one. Keeping up with preventive maintenance, updates and other service maximizes the lifespan of your equipment. Knowing the current age of an asset, its present condition and maintenance history is important, as well. An asset’s warranty, lease/purchase information and insurance policy all must be easy for you to access. Accurate, real-time assets inventory management allows to you to keep items in good working order. It enables you to order new assets without guesswork, to avoid asset loss and curb theft.
Depreciation: a Difficult Task
Here’s another benefit of assets inventory management you may not have considered: depreciation calculation. Fixed assets lose value with each passing year, even as they continue to help generate income for a company. Without a formal tracking system, calculating depreciation on your fixed assets may involve estimation and, ultimately, errors and penalties. Our tax laws change from time to time, which only complicates this task. While some businesses outsource this job to a trusted accountant, others keep it in house. In either scenario, an asset tracking platform helps ensure accuracy and compliance with tax laws.
The Problem with Ghost Assets
An assets inventory platform also helps prevent ghost assets. In fact, Gartner Inc. estimates that up to 30 percent of organizations don’t know what assets they own, where they are, what kind of condition they’re in, and/or who is currently using them. Even more alarming: Gartner has estimated that approximately 70 percent of organizations have at least a 30 percent discrepancy between their reported fixed inventory and what they actually have. These statistics are a strong indicator that many organizations are overpaying taxes and insurance on items they don’t even have. Over time, ghost assets are a drain on your bottom line and can potentially affect the health and longevity of your business.
Perhaps you’ve been attempting to track all of these moving parts with an Excel spreadsheet. That’s not an uncommon practice, but unfortunately, it’s an error-prone one. Your employees are busy, and it’s nearly impossible to maintain accurate records for every single one of your fixed assets – particularly when it comes to depreciation and tax law compliance.
Why You Need an Assets Inventory Platform
An assets inventory platform delivers accuracy, accountability and greater efficiency to your company while eliminating waste. It follows each asset throughout its useful life, from its initial acquisition and periodic maintenance to its phase-out from inventory. The platform maintains each asset’s depreciation schedule, which in turn gives you peace of mind that the information you turn over to your accounting and compliance teams is both updated and correct. No more guesswork, and no more penalties come tax time. It’s one of the best investments you can make for your business.
Asset Panda’s best-in-class assets inventory platform presents the most powerful, yet streamlined approach in the industry – and at a competitive price point. To learn more, visit assetpanda.com
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