Companies have a lot to juggle on a daily basis. From employees and customers, to the assets and inventory that make the company run. One thing you don’t want to worry about is tracking and managing leased assets.
Because they’re not actually “owned” by the company, leased assets are often ignored during the asset tracking process. However, they still play an important role in company operations and should be treated as such.
Why Companies Go Towards Leased Assets
The reason behind leasing assets rather than purchasing them varies from company to company. One of the primary reasons is usually limited budgets, because it doesn’t allow the purchase of expensive equipment. Sometimes a business only has a temporary need for a particular piece of equipment and buying it may not be worth it. Some companies lease so they can spread payments out over time, instead of making one large financial purchase.
However, one lesson many companies are learning about leased assets is it gives them a lower risk of asset obsolescence. As technology continues to advance and new products are being introduced, they begin to take the place of items we use. For many companies, investing in equipment that will be outdated in a year or two just doesn’t make sense finally, hence the move towards leased assets.
Because of this inevitable change, many leases come with the opportunity to upgrade after a certain amount of time. This ensures the company can continue running their business with the most updated equipment/software, and the leasing company continues to retain their customers, a win-win for both.
Leased Assets and Accurate Records
Leased assets should be tracked the exact same way as purchased assets. Because you’re responsible for someone else’s equipment, there’s quite a bit at stake if they are damaged or stolen. You need to trust that your employees will keep track of leased assets and handle them with care, because it would be a huge financial issue if something happened. That’s why keeping accurate records of leased assets is so important.
Be sure to track the details of every leased asset in your asset tracking software, just as you would a purchased asset. You should always know where the leased asset is, who has it, the check in/check out status, maintenance and history repair. It’s also helpful to note the following details:
– when and where the asset was leased from,
– any special terms/conditions of the lease,
– what to do or who to call should there be a problem with the asset, take a photo of the asset when you acquire it to document the condition.
Leasing has become such a regular practice that some agencies require documentation before they will agree to lease certain assets. These items are a huge part of their business and they want to ensure you will take care of their investments. Many leasing companies have specific requirements you have to meet before you’re allowed to lease assets. You know the term “you break it, you buy it,” well the same thing applies here.
Implementing an asset tracking software that allows companies to customize their data for leased or owned assets can get a much better understanding of their asset portfolio. This knowledge gives them a real-time picture of what assets they own vs. lease, where they are and a complete maintenance history on all assets in their possession. This knowledge is helpful for audits and when making budget and financial decisions on equipment for the company in the future.
Hopefully your organization has an asset tracking and management platform already in place. It’s important that your software has a way to track leased assets and ensures employees are abiding by regulations at all times. If not, Asset Panda has just what you need. Asset Panda’s Leased Equipment Tracking Software gives users full access to the information about leased assets, anytime and anywhere. Working the way you do, on devices your team is already using, Asset Panda keeps you updated on your roster of leased equipment, including who has it, where it is, what condition it’s in and which lease the equipment is on.
Asset Panda is so easy to use and it configures to fit your unique needs, even if when they change. Take a free tour today and get a quote if you need assistance with your asset tracking needs.
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