Fixed asset management advantages are more than accurate depreciation

As the economic recession continues, executive management teams and the boards of many private and public entities are exploring ways to proactively strengthen their financial positions in order to ride out the economic downturn. Among the strategies many of these organizations are taking is a move to more accurate and effective fixed asset management.

From a purely operational standpoint, having an accurate asset register that shows location, condition and the responsible contact can help ensure that assets are available and usable when needed. But how a business manages its assets also has multiple effects on the entity’s finances, through the very tangible costs of heightened insurance premiums, property taxes and neglected depreciation. These areas cannot be effectively addressed without a specialist fixed asset management solution.

Organizations that are using cumbersome spreadsheets to manage an ever-growing asset register constantly struggle to address a variety of issues surrounding the accountability and traceability of their asset base.

A recent article in The CPA Technology Advisor, Asset Management Means Much More Than Just Depreciation, emphasizes the importance of accurate asset depreciation, since assets are often one of the largest line items on a financial statement. With effective strategic management of depreciation a business can gain a more exact knowledge of its overall fiscal strength. Poor depreciation management can lead to missed tax benefits and return on investments.