In real estate business, it is often said that the most important deliberation is location. And when it comes to asset management software benefits we must agree to the fact that location is a key element.
For most organizations, Investing on fixed assets is a rigorous process. Tracking the assets with by tagging the assets and using barcode technology is a great way to keep track of what the organization has in possession and where it is located within the organization. The process is relatively simple: During an inventory process, each tagged asset will be given a barcode number which can be scanned, and its location is verified and then it is added into one extensive database.
There are many benefits correlated with an asset verification system, but it’s not the only element of asset management software that an organization should be taking up for operational efficiency. There is a lot to be extracted in calculating the value and useful life of the assets, as well as having a systematic method for tracking fixed asset data.
Given below are a few benefits of a fixed asset management solution that needs to be talked about more apart from location within an organization.
- Effective Purchase Planning:
By understanding where an organizations asset falls in their usefullife cycle can help in the effectiveness of purchase planning.Organizations which have an out-dated fixed asset register (FAR) often discover that a vital asset has reached the end of its useful life, and needs to be replaced. This lack of serial knowledge about the fixed assets can result in overspending. If the organization is aware of a large purchase months or even years in advance, they have the time to research for more options and create a financial plan.
Keeping records of the assets based on their current condition will also give the chance to determine the best way to dispose the asset as and when required.
- Staying Complaisant with Accurate Financial Statements:
A fixed asset management solution needs to be suitable enough to automate the process of depreciation and also examine the fixed assets which are nearing the end of their useful life. When you maintain accurate information on your fixed assets, the processes of determining the appropriate depreciation schedule and, if required, tax liability is simplified.The process of determining the apt depreciation schedule and tax liability if it is required are clarified if the information of fixed asset register (FAR) is accurate enough. An accurate picture of the assets can also help ensure the building contents receive the appropriate insurance coverage.
- Auditors Satisfaction :
No auditor would like to work with an unprepared client and a complex spread sheet with data scrambled around.
The right software solution for fixed asset management software can provide a number of tools to assist the organization in preparing for an audit which includes:
- Automated Depreciation: Depreciate and track fixed assets in an effortless, audit friendly manner.
- Reports: Reports can be premade that meet the demands of the auditor and also create your own reports.
Being able to search data, run reports, and demonstrate a complete audit in a hassle free manner is a win-win for everyone