For local governments, keeping track of fixed assets is an important task. However, many rely on spreadsheets for fixed asset management – an approach that can often lead to inaccuracy and inefficiency, especially when dealing with large bodies of assets such as those overseen by area governments.

Simply put, spreadsheets come with a significant risk of error, in part due to the fact that they require data to be input manually and must each be constructed by hand using a complex system of coding and algorithms.

In contrast, asset management software can facilitate the quick and easy tracking of each asset’s location, value and condition – as well as other information, such as maintenance history and depreciation schedule. This not only increases efficiency but also boosts accuracy and ensures equipment is available when necessary, mitigating unnecessary repurchasing and reducing the chance that items will be reported as lost or stolen.

For governments concerned about keeping expenditures down, the extra expense associated with upgrading to fixed asset software will most likely be quickly offset by the benefits of the more streamlined management process.

Running your own small business is easier said than done. If you’ve got your financial plan in order, have fine-tuned your cash flow process, offer stellar customer service and have a solid sales and marketing approach in place, the last thing you need is for fixed asset management to become a stumbling block.

However, even for a small company, fixed asset tracking can quickly get out of control if you don’t have an adequate system in place.

The idea of painstakingly sorting through every capital asset on your company’s books may sound tedious, but failing to comprehensively inventory your holdings can lead to trouble down the road. Not only could you miss opportunities to deduct depreciation, but you may find yourself running afoul of regulations such as the Sarbanes-Oxley Act, as well as Internal Revenue Service requirements.

That said, getting your company’s fixed asset holdings in order doesn’t have to be painful. Leveraging fixed asset inventory software can help you set up a complete list of property, plant and equipment, and also store important information such as tax depreciation schedules and warranty details.

For those using outdated or manual fixed asset management methods, conducting a physical audit of your organization’s fixed assets may seem like a gargantuan task. However, leveraging a system of barcode labels and handheld inventory barcode scanners can significantly reduce the time you spend carrying out an audit – and, what’s more, empower virtually anybody in your company to do so.

Scanners negate the need to manually record each item’s serial number, location and other necessary information. Rather, barcoded assets can be read by simply passing the scanner over them, expediting the asset inventory tracking process while ensuring accuracy as well.

After you’ve scanned all the items in a room, department or building, upload the results to your fixed asset management software solution. The software can help your company easily keep tabs on its asset register, minimizing the opportunities for items to be inaccurately declared as lost. This saves the money that would have gone toward the purchase of unnecessary replacements, and also mitigates the likelihood of employee misappropriation going undiscovered.

Are you using barcode scanners as part of your fixed asset management process? How does it work for you? Let us know in the comments section below.

Many companies use spreadsheets for fixed asset tracking and management purposes. However, there are several key inhibitors to this approach that could put the accuracy of your fixed asset register at risk.

The fact is, a depreciation calculation based on a spreadsheet is likely to be inaccurate, either because the data or formula itself were entered incorrectly. Spreadsheet errors can quickly multiply, which could have a disastrous effect on your records.

Additionally, due to the manual nature of spreadsheets, it’s difficult to keep records updated. An outdated fixed asset register can cost your company money and encourage the presence of ghost assets – those that are still on your books despite no longer being in use. Ghost assets can haunt your business in a number of ways, including pushing up insurance premiums and raising taxes. They can also make your company look older on paper, which could be problematic when you’re trying to secure capital.

Fixed asset management software offers a centralized receptacle for all information pertaining to your fixed asset holdings, from warranty details to depreciation schedules. The automated nature of the software mitigates the potential for incorrect calculations and requires less of a time commitment.

The first thing to do after you’ve successfully wrapped up a physical fixed asset audit is give yourself a pat on the back. Auditing fixed assets can be a lengthy, drawn-out process, especially if you don’t have a fixed asset management system in place and are trying to ascertain the location of each item on your books.

Chances are, your audit uncovered some discrepancies. It’s extremely likely that during your step-by-step inventory, you were unable to locate some items listed on your fixed asset register, despite the fact that these assets are undergoing depreciation and are likely insured.

This can happen for several reasons:

- The item is still in service, but you overlooked it.
- The item has been lost/stolen.
- The item was taken out of service (sold, disposed of, etc.), but this was never recorded.

Leveraging fixed asset management software can help you improve the accuracy of your register, and maintaining these records can negate the need to carry out such an extensive, time-consuming audit in the future.