Learn more about Fixed Asset Software
What is Fixed Asset Software?
Fixed asset software is a centralized database and tool set for tracking and managing all of your company’s fixed assets, throughout the lifespan of each individual asset. This software eliminates the need for managing various spreadsheets and balance sheets on your fixed assets, giving you a more streamlined way to track and report on those assets for compliance, insurance, audits, or asset depreciation purposes.
What is a Fixed Asset?
A "Fixed asset" is any physical asset you purchase for long-term use in producing the goods or products that your business sells, without expecting to consume, sell or otherwise turn that asset into a cash, or liquid, asset for at least one year.
What is an Example of a Fixed Asset?
Examples of fixed assets include:
- Land, buildings, or other properties
What are the Common Features of Fixed Asset Software?
The common features of Fixed Asset Software are:
- Track the location of all your fixed assets
- Monitor equipment that must be checked out to employees (and checked back in)
- Track due dates on equipment that must be returned
- Schedule maintenance
- Consolidate maintenance records into one system
- Track audit history
- Manage and track fixed asset costs
- Calculate and track fixed asset deprecation (in multiple currencies)
- Integrate with accounting software
- Accurately track fixed asset lifecycles and reduce insurance premiums
- Prepare reports for tax compliance, audits, and insurance
What are the Benefits of Fixed Asset Software?
The benefits of Fixed Asset software include:
- Boost productivity and efficiency in managing your fixed assets
- Improve auditing efficiency and accuracy of all fixed assets, across multiple locations
- Enhance audit accuracy
- Improve accuracy on fixed asset depreciation reports
- Minimize insurance premiums and claims
- Simplify end of the year reporting procedures
- Simplify compliance with industry and governing regulations
- Reduce equipment costs by avoiding unnecessary equipment purchases or upgrades
Why Do We Need a Fixed Asset Management System?
You need a fixed asset management system to organize, track, and monitor the lifecycle and condition of fixed assets to ensure they are all in good condition and providing ongoing value to your company. Using fixed asset software can also help increase the lifetime of your fixed assets.
Fixed asset management enables organizations to monitor equipment and vehicles, assess their condition, and keep them in good working order. In this way, they minimize lost inventory, equipment failures and downtime — and improve an asset's lifetime value.
What are the Risks Associated with Fixed Assets?
The risks associated with fixed assets are typically physical issues or damages, theft, or control issues in managing assets.
Why is Fixed Asset Management Important?
Fixed Asset management is important because it provides companies with necessary tools for tracking, organizing, and monitoring valuable assets to ensure they stay in good condition and remain valuable and useful to a company throughout their lifecycle. Fixed Asset management can also minimize losses and add longevity to fixed asset life spans.
What are the Challenges with Fixed Asset Management?
The challenges with fixed asset management include:
- Correctly mistakes and finding solutions for inefficiencies
- Reverting back to spreadsheets
- Dealing with the pressure of financial close periods
- Keeping controls in place to protect fixes assets
- Customizing reporting
How to Buy Fixed Asset Software?
You can use the following checklist to help you determine how to buy the best Fixed Asset system for your business.
- Focus on business needs, fixed asset issues, and growth goals driving the decision to get a new or upgraded software.
- Plan for data migration, implementation costs, IT involvement, and any downtime that may impact employees or vendors during the transition.
- Make a plan to support user adoption through training.
- Understand the processes you’re looking to streamline and automate.
- Don’t skip the product demos offered by Fixed Asset software vendors to show features and functionality.
- Understand reporting and analytics needs