For businesses, government agencies and other large organizations, it is vitally important to track fixed assets such as technology, chairs and cars, and an automated data collection system can help firms in this endeavor, industry professional Neil Jackson wrote in a March blog post.
>California State University, Fullerton, defines a fixed asset as a non-consumable and tangible item not directly attached to a building that is worth at least $500. In addition, Jackson reported that the 2002 Sarbanes-Oxley Act requires publicly held companies to note all fixed assets, which can be an especially cumbersome task for larger organizations. However, data collection software can greatly streamline the task of compiling a list of all fixed assets.
"Enterprises and small to medium-sized business alike can benefit from fixed asset tracking software by using mobile computers to scan barcode labels and capture asset inventory within a building, complex, campus or in the field," Jackson wrote. "Users can confirm the location and status of assets with less than 1 [percent] margin of error (usually a result of user error)."
Benefits of fixed asset tracking software for organizations of all sizes
While larger companies are required by law to track their fixed assets, small and medium-sized businesses (SMBs) would also be wise to consider using automated data collection software for this endeavor, according to the blog post. Most SMBs will almost certainly at some point have to apply for a loan to get additional funding for growth, and they will have to provide the loan officer with a list of all of their fixed assets. Instead of wasting time compiling this information by hand, smaller enterprises should instead use supply chain management software that can accurately track their assets.
Businesses of all sizes should not only consider the effect of their data gathering method on their bottom line, but also on the time expenditure of a fixed asset analysis. Jackson wrote that ideal automated data collection methods allow any organization to track all aspects of a fixed asset acquisition during any inventory cycle. A solution needs to take note of the asset and its current location on premises, in addition to the date it was acquired, its costs both now and at the time of sale, and its current state and if any repair done has been done on it in the past.
"We have all heard the old adage 'time is money,' and while we all believe it in theory, few businesses implement it into practice," he wrote. "A good asset tracking software provides a fast and accurate method of collecting data by performing inventory cycle counts."