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What is Fixed Asset software?

Are you currently reviewing your asset management processes but seeking further background information to assist with your decision making? Read on for all you need to know about fixed asset management and fixed asset software.

Fixed Asset Software Vs Spreadsheets
 

The cornerstones of fixed asset software

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A Central Asset Register

An asset register is a database of all assets within an organization and a record of all events in each asset's lifecycle.

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Asset Tracking

Asset tracking is essentially the monitoring of asset movements to ensure the register is up to date at all times. This could be the daily process of updating the system via mobile devices or conducting regular asset audits.

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Fixed Asset Accounting

Fixed asset acocunting covers the calculation of depreciation and reporting on all financial information associated with the fixed assets on the balance sheet.

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What is Fixed Asset Software used for?

 
Organizations may often maintain multiple lists or registers. This causes many problems and is an inefficient way to manage assets as it becomes difficult to verify each list, avoid duplication, and produce depreciation calculations. A central register solves these issues and helps to avoid any duplication of asset purchases. Effective fixed asset software is essential for maintaining a central database and will enable you to provide a true and accurate picture of all assets owned.
Storing detailed asset information and financial history provides organizations with valuable data to enable business decision making with a full audit trail.
Problems with fixed asset management are often flagged up during audits which organizations can fail if they don’t have a good system in place. Using specialist software can help finance teams to meet and surpass audit regulations.
Many companies are paying insurance premiums on assets that are no longer in use. It’s possible that premiums could be reduced if the asset register is always kept up to date. It is also easier to make a claim if you can provide proof of the assets you own.
This is the process of tracking the location and activity of assets on a regular basis. Usually assets are barcoded or tagged so movements can be scanned easily though information on the asset and its location can also be entered manually if required.
If organizations have roaming assets then it is crucial for them to track when, and to whom, assets were loaned out. The asset register should be updated each time an asset is issued and returned.
Audits are carried out to match the asset register against the actual assets that are located in the organization.
Organizations also need to keep an inventory of non-capitalized assets. It is best to record these items in the central asset register to maximize effective control and usage.

Research Article

 

Counting the cost of insurance in relation to Fixed Asset Management

Failure to maintain an accurate asset register can result in insuring assets you no longer own. Furthermore, poor asset descriptions typically result in claims being challenged by insurance assessors.

Read our article to find out more about the effect of the asset register on insurance premiums.


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Who Uses Fixed Asset Software?

Effective fixed asset management software with a central asset register is vital to every element of an organization. If each division maintains a separate register then problems can occur. The infographic below shows the ideal scenario of how the process should work.



 
F A S infographic
 
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