The seven sins of spreadsheets for controlling fixed assets

From a purely operational standpoint, having an accurate asset register that records location, condition and the responsible contact can help ensure that assets are available and usable when needed. But how an organization 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.

Manual fixed asset management methods can be labor intensive and add considerably to the total cost of asset ownership. A good fixed asset management system that also incorporates barcode technologies will speed up your physical audits, making them both fast and efficient leaving your finance team with more time to focus on other tasks at hand. It will also establish asset values and produce accurate depreciation and amortization calculations in accordance with relevant tax and accounting rules.

But why should an organization trade in its spreadsheets for a dedicated fixed asset management system?

The accurate management of fixed assets can lead to significant tax savings in depreciation deductions, while poor fixed asset management can negatively affect the accuracy of financial reports, causing re-reporting and ultimately impacting the bottom line.