Fixed-asset tracking is a critical function of a company’s accounting department. This process involves tracking and maintaining visibility of all of an organization’s physical assets, including:
- Stationary equipment
- Portable machinery
- Hardware, such as servers and routers
Without an effective fixed-asset tracking system in place, an organization will struggle to monitor the condition and performance of physical assets. Ultimately, this will shorten the life cycle of equipment and increase operating and maintenance costs.
By investing in a robust fixed-asset tracking solution, businesses can improve the lifetime value of their assets, enhance resource allocation, and optimize productivity. Let’s examine the importance and benefits of accurate fixed-asset tracking
Benefits of Implementing a Robust Fixed-Asset Tracking System
Your organization must implement a robust enterprise resource planning solution if it wants to get the most out of its physical assets and equipment. Modern, cloud-based ERP software allows you to:
Reduce the Risk of Fraud or Costly Errors
While most of your employees and vendors conduct themselves with integrity, you must safeguard against the small percentage of individuals seeking to exploit your business. Without adequate fixed-asset tracking capabilities, it’s difficult to protect your business against theft and fraud.
A dynamic ERP software solution like Acumatica can significantly increase your asset visibility. You can use this enhanced oversight to protect your assets, precisely monitor your equipment's location, and prevent fraud.
Improving your asset-tracking capabilities also makes it possible to reduce the risk of costly errors. For instance, you can ensure that your staff members don’t miss important maintenance deadlines, decreasing the likelihood of costly downtime or equipment failures.
Meet Regulatory Standards
Meeting important regulatory standards such as ISO 55000 promotes financial accountability across your entire organization.
Adherence to these standards also demonstrates to stakeholders that your business is a good steward of their investments. Depending on your industry, adhering to regulatory standards may also help you avoid incurring fines or other penalties.
Lastly, accurately tracking your physical assets allows for more effective maintenance, which can prevent equipment-related workplace incidents and shield your business from liability.
Maximize Asset Utilization
As part of your fixed-asset tracking efforts, you’ll be able to gauge total asset utilization. This metric will reveal whether you’re effectively allocating and utilizing your current assets or need to rethink your equipment deployment strategies.
Underutilizing your assets can negatively impact business productivity and decrease your return on investment on costly equipment purchases. It’s therefore vital that you closely monitor this metric and maintain accurate visibility of your assets.
Is Your Asset Tracking System Up to Par?
Chances are that you already have an asset tracking system in place. But is it delivering value for your business or holding you back? If it’s the latter, you’ll need to make some changes to your technology stack to ensure that your solutions are working in your best interests and not against them.
When assessing the efficacy of your asset tracking system, you should ask questions like:
- Does my current system integrate with other applications?
- Can I easily track asset location, performance, and utilization rate?
- Am I able to automate workflows to streamline asset tracking?
- Do I rely on a large volume of manual input to facilitate asset tracking?
- Are equipment complications and excessive downtime undermining profitability and productivity?
Ideally, your fixed–asset tracking system should provide real-time insights into the state and status of your physical assets. If visibility is limited and your current system isn’t delivering value for your business, it’s time for an upgrade.
Acumatica Can Modernize Your Asset Tracking Capabilities
Is your asset-tracking system inefficient, unreliable, or downright ineffective? If so, consider replacing it with a comprehensive enterprise resource planning (ERP) solution like Acumatica.
Acumatica ERP software provides you with the tools needed to maintain total asset visibility. You can conduct timely, accurate depreciation calculations, track reporting scenarios, and automatically convert new purchases into fixed assets.
Stop wasting time and exposing your business to undue risk by relying on outdated fixed-asset tracking processes. Partner with Cloud 9 ERP Solutions and let us oversee your Acumatica ERP software deployment.