Most companies require several departments in order to keep up with daily business operations. Human resources help you manage your employees, accounting keeps an eye on your finances, and your IT department is there to make sure everything works the way it should. Some of the time, these departments don’t share information with other teams; this decision is so they don’t have to worry about the hassle of keeping this information up-to-date across the board. However, this lack of sharing can cause major problems in your business, as there is often a lot of necessary overlap in different areas of your company. If your departments don’t share information with each other, it could seriously damage the health of your business.
One of the areas in which using a siloed business approach can be dangerous is in tracking non-physical assets. Intangible assets are one of the most common investments in business today. In fact, your company likely has more intangible assets than you do physical ones. American companies currently possess more than $8 trillion in intangible assets.
You understand the importance of tracking your physical assets. You know that you need to keep detailed records of each of your investments, their value, life cycle, and maintenance logs. But tracking intangible assets is just as important, if not more so.
Examples of non-physical or intangible assets include:
- Employee hours
- User agreements
- Software licenses
- Compliance records
- Customer Data
When you don’t track intangible assets such as these, you risk a number of issues surfacing in your business. For example, if your intangible assets don’t appear on a balance sheet, there’s no way for you to know about the value or lifespan of these assets. This, in turn, can lead to losing out in money if your assets aren’t lasting as long as they should.
Additionally, using multiple software programs to track or access intangible data makes it difficult for company departments to communicate with each other. Neglecting to share information on those assets can create errors in your data, which means your employees won’t have everything they need to do their job correctly. This can lead to dissatisfied customers, subpar performance, and confusion on how to proceed.
There’s an easy way to avoid these issues, and that’s to use a centralized software program to track your non-physical assets. Using a SaaS makes it easy for all of your employees to access customer information, user agreements, compliance records and more, no matter what department they work in. You’ll have a great insight as to what is happening in your company in real-time and you’ll save your employees a lot of time and effort when it comes to communicating company information. A centralized platform reduces the need for data migration, which in turn makes your data more accurate.
Complications Caused by Using a Siloed Approach to Track Intangible Assets
What happens, though, if you don’t implement a holistic, centralized SaaS platform to track your intangible assets? Here are several of the problems you could encounter:
You Can’t Find Intangible Assets on Balance Sheets
If your asset information is spread across several departments, you might not be able to find your assets on your company balance sheet when it comes time to make quarterly reports. This is probably the worst problem of them all, as not having any information on your assets makes it difficult to track other aspects such as life cycle and maintenance requirements.
When your intangible assets don’t show up on your balance sheets, it’s difficult to know what you have on hand. This can lead to you spending more money than necessary if you end up purchasing software licenses, user agreements, or licenses that you can already access.
Additionally, tracking valuable company assets like employee hours is vital to properly balance your finances. If you don’t use a centralized, reliable system to keep track of hours worked, overtime, or vacation hours, you risk not being able to pay your employees the correct amount owed because your data could be incorrect. This could easily be the case if you use something like a spreadsheet to keep track of hours, which multiple employees can access to adjust their hours. In the end, you won’t be able to accurately track how much profit your company is making compared to the overall man hours you’re putting in, and you won’t be able to successfully improve your efficiency and output.
Asset Panda can help you track and identify the value of your company’s intangible assets. Our platform makes it easy to identify what assets you have available, how long they should last, what maintenance and renewal requirements are necessary to keep them functioning, and potential gaps in your asset information. Sign up for a free trial to see how Asset Panda can provide a holistic software solution for tracking intangible assets.
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