There seem to be many more challenges when larger organizations have or are going to rationalize their fixed asset management. Usually, the spread sheets fall short while attempting to get accurate data at one place. To overcome this, Automation with an integrated solution is the best thing that can be done for fixed asset management. Mostly, businesses with multi-locations struggle more than any other organization. If your organization is facing these challenges while maintaining and keeping record of fixed assets with different sub-ledgers and processes, the following tips are for you.
Let’s figure out the various kinds of challenges before looking to overcome them:
- Multiple Spread sheets.
- No ‘requirements’ built into Spread sheets which leads to missing data.
- Possibility of Emails with attachments gets misplaced.
- Deadlines for month end, quarter end, and year-end are to be met.
- Inconsistency in reporting data.
- Tax consequences.
- Risk of no accountability or history tracking
As we have discovered the various kinds of challenges for fixed asset management, let’s take a look at the ways to overcome the above challenges:
- Verification of the Policies and Procedure Manuals: If new software has been implemented then in most cases the procedure manuals and policies remain the same and it could create problems if not verified and changed at the right time.
- Review of all systems and spread sheet templates: A spread sheet could have been created a long time ago and the data in it could be obsolete. Everything needs to be brought on the same page and training needs to be given for the same. An automated tool needs to be thought about that is simple to use and will keep everyone on the same page. These tools should be capabile to rename the fields, create the drop down lists, ability to lock down the fields or create user profiles that can limit certain types of functionalities.
- Time Frame: Many hours are spent each month at each location to finalize and provide an ‘accurate’ record of fixed assets. The process needs to speed up and most importantly minimize the errors. A solution needs to be found that works for everyone and that has the ability to be customized to the business. When a solution is properly implemented with fields, templates, integration, etc., data entry or import of masters should be quick and hassle free.
- Frangibility: Fixed Assets are constantly moving in a flow and need to be updated and monitored to full extent. The more the organization grows, the more the assets that come in, especially with multi-locations and multi-users. It’s important that each location is consistent with the other to have a clear picture of the whole organizational assets. You never know when it might make sense for an organization to blend their data.
- Updated Reports: Each and every report should be in sync with the other reports of the multiple locations. Spread sheets can be in depth but it can’t create accurate reports for which, fixed asset management software is needed. The more the consistent data can be, the more visibility in understanding the current situation of the assets.
Conceivably, the above points shall help in understanding not only the advantages but also the need for fixed asset management software.