Your business’s success is all about the team. But for your team to do their best work, they need tools and equipment like cars, computers, office furniture, and machines. Managing these assets well means making sure they’re always ready to use and in good shape. This is where asset management comes in handy.
How Essential Asset Management is for Business
Asset management helps you keep an eye on all the important things your business owns. It lets you track where your tools and equipment are, keep them working well, cut down on repair costs, and stay organized about what you have and what you might have lost or sold.
Let’s dive into how managing your assets can make your business run smoother. You’ll learn how to keep track of all your important equipment, make sure it’s working right, and use it for as long as possible.
Say hello to a business that runs like a well-oiled machine, without lost items or broken equipment slowing you down.
What Are Fixed Assets?
In business, assets fall into two main types: current assets and fixed (or non-current) assets. Fixed assets are long-term investments made by a company, designed to bring in income for more than a year. This distinguishes them from current assets such as inventory and accounts receivable, which are converted into cash within a year. Cash itself is counted as a current asset.
Examples of physical (tangible) fixed assets include buildings, heavy equipment, computers, and vehicles. Meanwhile, intangible fixed assets cover items like copyrights, trademarks, patents, and other forms of intellectual property.
Fixed versus Current Assets
Tangible fixed assets typically appear under the “Property, Plant, and Equipment” (PPE) section on a company’s financial statements. Understanding fixed assets helps clarify their contribution to the sustained success of a business.
What Does Managing Fixed Assets Mean?
Managing fixed assets is like looking after the most important items your business owns, such as computers, cars, and other valuable things. It involves watching over these items carefully, knowing where they are, checking if they’re in good shape, and fixing them when necessary.
You also have to make sure that taking care of these items doesn’t cost too much. Managing your fixed assets well helps your business run more smoothly and keeps surprise expenses low. It makes sure all your valuable items are safe and sound.
The main jobs in managing fixed assets include:
- Keeping track of all your important items
- Knowing where they are
- Cutting down on the cost of looking after them
- Helping your business do better
- Keeping records so you know if anything is stolen or lost
To help with this, many businesses use special software called computerized maintenance management systems (CMMS). This software makes it easier to manage your fixed assets by doing a lot of the work for you, so you can focus on other important things.
Why Managing Fixed Assets is Key for Your Business
Managing fixed assets is really important for your business. It helps you get the most out of the big things you’ve bought, like computers, vehicles, and machinery—items that cost a lot but are essential for your business to make money and succeed.
Benefits of Managing Fixed Assets
If you don’t manage these assets properly, you could run into problems like unexpected downtime, broken equipment, missing items, and even fines. Not to mention, if your equipment isn’t working right, it could make your products or services worse, which customers won’t like, and it could hurt your business’s reputation.
Keeping Things Safe and Running Smoothly
Good management keeps your equipment working well, which means your business can run smoothly. This also makes your workplace safer and avoids problems with not following safety rules, which could lead to fines or harm your business’s good name.
Making Your Business More Money
Well-managed fixed assets can also help your business make more money. By keeping your buildings, equipment, and vehicles in good shape and working efficiently, you spend less money on upkeep and make more money from them. This is especially true if your business owns a lot of these assets.
Less Downtime and Repairs
When you manage your fixed assets well, you can avoid those times when equipment breaks down suddenly, which saves you time and money. Keeping track of maintenance schedules means less downtime and fewer expensive fixes.
Staying on the Right Side of the Law
Using fixed asset management software helps you keep accurate records for taxes and regulations. This way, you can work out depreciation, avoid fines, and get the best tax deductions. It helps you follow the rules and keep your business in good standing.
Preventing Loss and Theft
With a good management system, you’ll have a clear record of what you own and where it’s located, making it hard for items to get lost or stolen. Tagging assets and updating their locations means you always know where your stuff is and reduces the chance of theft. In short, managing your fixed assets well means your business can run more smoothly, safely, and profitably. It helps you keep track of your valuable assets, reduces risks, and makes your business more successful.
How Fixed Asset Management Software Helps
Fixed asset management software is a tool that helps you keep an eye on all the important things your business owns, like equipment and buildings. It puts all the important details about these items in one place, from when you bought them to when you get rid of them. This means you always know what you have and that the information is right.
Benefits of Asset Management Software
This software makes your life easier by doing a lot of the work for you. It can figure out things like how much your assets are worth over time and create reports without you having to do it by hand. So, you have more time for other important work.
It also makes fewer mistakes than doing it by hand. Because everything is kept in one system, you’re less likely to lose information or get things wrong.
Plus, it helps you make smarter decisions. The software shows you clear information and insights about your assets, helping you use them better and follow rules and regulations.
Keeps All Your Asset Info in One Place
If you’ve ever lost important papers or had trouble finding information when needed, this software can end those problems. Everything is stored safely in one spot.
This is really helpful when it’s time for things like tax audits. You can quickly find the information you need without stress, making audits smoother.
Helps You Make Decisions Faster and Better
With this software, you can easily track where your assets are, how much they cost, and when it might be time to replace them. This means you can avoid buying things you don’t need and decide when to sell something to invest in something new.
Because you know where your assets are and how they’re being used, you can make sure your future buying decisions are smart and help your business.
Saves Time With Automation
Dealing with assets can take a lot of time, especially when you have to figure out things like depreciation or keep track of leases. This software automates these processes, saving you time and reducing mistakes.
By accurately keeping track of your assets, you can make sure you’re following all the rules and regulations, avoiding fines and saving money. It also helps you spot any safety risks or problems with your equipment early on, so you can fix them before they become bigger issues.
Gets Rid of “Ghost Assets”
Sometimes your records might show assets you don’t have anymore. These “ghost assets” can still cost you money in taxes or insurance. The software helps you keep your records up to date, so you’re only tracking and paying for what you actually own.
Managing fixed assets means keeping track of all the big things a company owns—like machines, buildings, and cars—over their entire life. This involves noting down all the details about these items, tracking where they are and their condition, and handling any repairs or maintenance they need.
This approach to managing assets has lots of advantages. It ensures that everything the company owns is being used effectively and not just sitting around, which can save money. It also helps with maintaining accurate records for audits and staying compliant with regulations, which is very important. Moreover, it can assist a company in deciding which assets are most crucial and which might need to be replaced. Good management of fixed assets can make a company operate more efficiently and increase its profits.
Are you looking to get a better handle on tracking your company’s assets?
Try a free Dalos demo today to see how asset tags can make it easier for you to keep track of when you bought something, how much it cost, and where it is now. Don’t miss the chance to improve your asset tracking—book your demo today!