Key Measurable Elements for Fixed Asset Tracking and Management
Within a company, assets are distributed among departments and locations based on the need or plan decided upon. Many types of fixed assets can have multiple uses depending on the department they are allocated to, e.g. laptops and desktops. Such fixed assets, while defined as “fixed”, may not necessarily be so in the actual sense of the word. Equipment and furniture, laptops, vehicles, etc. are “fixed” assets which might be moved from one department, project or location to another. Therefore, the tracking of fixed assets refers not only to the value of the assets, but their location and ownership as well.
Depending on the industry and the nature of the work, several key factors could be tracked using the Fixed Asset Management Solution available. It can get confusing as to which of these need to be recorded, updated and tracked on a regular basis.
Here is a list of the 20 most common elements that your organization should be keeping an eye on.
Useful life: The amount of life that the asset can still be used for, usually measured in years
Condition: wear and tear, other possible damage to the equipment, whether in working order or not, etc.
Asset code: The unique code assigned to the asset, based on category, location, etc.
Purchase order number: The unique PO number based on which the asset was acquired
Department: The team to which the asset has been assigned.
Vendor: The supplier or manufacturer of the asset
Fund: Source from where the payment for the asset was made
Location: The GPS coordinates of the device, giving its relevant physical station. This can be the building, department, floor, section and/or workstation to which it is assigned
Acquisition method: Whether through direct order, tender, etc.
Acquisition cost: Final cost of acquiring the asset, inclusive of interest cost, duties, etc.
Description: A statement about the device and its purpose, etc.
Employee Assigned: the employee to whom the device was allocated as his or her responsibility
Serial number: Unique number on the device given by the manufacturer
Model: code provided by manufacturer
Purchase date: Date of acquisition of the equipment
Category: Whether computer equipment, engineering machinery, furniture, etc.
Class: The specific type within which the category falls.
Fixed Asset Verification, Tracking and Accountability
Investing on fixed assets is a long term decision, with significant impact on future cash flows and the health of the business. Keeping this in mind, the acquisition of fixed assets is a rigorous process and once the acquisition is completed, ensuring the right utilization, tracking and ultimate disposal of these assets becomes critical. Instances of theft, loss due to misuse, etc. need to be curbed and tracking asset utilization, service, etc. is critical. Fixed asset verification & tracking can help to safeguard the fixed assets and also ensure accountability right throughout the organization. By keeping up-to-date records on fixed asset data elements, organizations can breathe easier knowing that their resources are being managed efficiently to the full extent.
Fixed Asset Tracking and Efficiency
Maintaining a record of asset characteristics is quiet essential in the lead up to increased organizational efficiency and a steady internal communication setup. This also helps in streamlining inventory and purchasing processes in future. By maintaining all of the asset data in one place and doing asset verification, the organization can conveniently access information at any time, and can be rest assured that the information is up-to-date.
For this, using the right tools like Tracet, a Fixed Asset Management system, provides significant value by easing the process and reducing complexity of tracking fixed assets of the company. To know more about the features and benefits a Fixed Asset Management Solution like Tracet offers, fill in the form below and a company representative will be in touch. Alternatively, email us at email@example.com