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What is Fixed Asset software?

Are you currently reviewing your asset management processes but seeking further background information to assist with your decision making? Read on for all you need to know about fixed asset management and fixed asset software.

Fixed Asset Software Vs Spreadsheets
 

There are three main elements to fixed asset software...

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A Central Asset Register

Compiling an effective database of all assets within an organisation and recording all events in each asset's lifecycle.

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Asset Tracking

Monitoring the movements of assets and ensuring the register is up to date at all times. This could be the daily process of updating the system via mobile devices or conducting regular asset audits.

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Fixed Asset Accounting

Calculating the depreciation and reporting on all financial information associated with the fixed assets on the balance sheet.

Would you like to learn more about RAM's Fixed Asset Software?


Fixed Asset SoftwareLease Accounting Software

What is Fixed Asset Software used for?

 
Organisations may often maintain multiple lists or registers. This causes many problems and is not an efficient way to manage assets. It becomes difficult to verify each list, avoid duplication and produce depreciation calculations. A central register solves these issues and helps to avoid any duplication of asset purchases. Effective Fixed Asset Software is essential for maintaining a central database and will enable you to provide a true and accurate picture of all assets owned.
Storing detailed asset information and financial history provides organisations with valuable data to enable business decision making with a full audit trail.
Problems with fixed asset management are often flagged up during audits which organisations can fail if they don’t have a good system in place. Using specialist software can help finance teams to meet and surpass audit regulations.
Many companies are paying insurance premiums on assets that are no longer in use. It’s possible that premiums could be reduced if the asset register is always kept up to date. It is also easier to claim if you can provide proof of the assets you own.
This is the process of tracking the location and activity of assets on a regular basis. Usually assets are barcoded or tagged so movements can be scanned easily but information on the asset and its location can also be entered manually via a smart device if required.
If organisations have roaming assets then it is crucial for companies to track the process of when and to whom, assets were loaned out. The asset register should be updated each time an asset is issued and returned.
Audits are carried out to match the asset register against the actual assets that are located around the organisation.
Organisations also need to keep an inventory of non-capitalised assets. It is best to record these items in the central asset register to maximise effective control and utilisation.

Research Article

 

Counting the cost of insurance in relation to Fixed Asset Management

Failure to maintain an accurate asset register can result in insuring assets you no longer own. Furthermore, poor asset descriptions typically result in claims being challenged by insurance assessors.

Read our article to find out more about the effect of the asset register on insurance premiums.


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Who Uses Fixed Asset Software?

Effective fixed asset management software with a central asset register is vital to every element of an organisation. If each division maintains a separate register then problems can occur. The infographic below shows the ideal scenario of how the process should work.



 
F A S infographic