Why Managing a Fixed Asset Register Is Important & What Are Its Benefits?

What Are the Benefits of Maintaining a Fixed Asset Register?

There are many benefits of maintaining a fixed asset register:

Complete Information

When you maintain a fixed asset register you can have all the details about assets that are very helpful in decision making. Which assets need to dispose of what is the asset status, how frequently it is used, where it is located for audit trial purpose.

When you know asset whereabouts, it is helpful for the audit team to verify assets physically. Complete information about assets provides you with crucial information on the asset’s average life, asset expenses, utilization of the asset. These sorts of information help in setting future goals.

Compliance

If your reports are not accurate then your organization might end up paying a penalty for a rule violation. No organization wants these sorts of issues, right?

To maintain accuracy, an IT asset register can help by providing precise information. With the IT asset register, you can avoid all the compliance-related issues as well.

Here is an example, suppose your organization using software & it expired recently. The auditor discovers it and penalizes the organization. But with this software, it will alert you in advance that software is about to expire and you can renew it.

Depreciation

Depreciation of assets is essential for an organization. Most of the organizations have some error in calculating depreciation. Because several factors need to be considered which you will not be able to do manually.

However, at the point when your association is equipped with this software system, you won’t need to stress over depreciation computation as this software comes with several inbuilt depreciation methods.

Maintenance

Maintenance is one of the invisible pillars that can play a significant role in business growth. To keep assets well maintained and to avoid sudden asset break down you must accentuate asset maintenance.

In the long run, you will see a great saving in your bottom line. A maintenance strategy is a never-ending procedure for calibration management, increasing efficiency, and asset productive life, safety, and reliability as well.

How to Ensure Precisely Maintained Fixed Asset Register?

You can create a list with fixed asset register or asset management software and cross-check with physical assets. The asset verification and audit process will be more simplified when assets are tagged with barcode or RFID.

With this process, you will be able to know how many assets you have on the list; how many are lost, and how many are present there. This complete procedure shall be done & repeated at a regular period to maintain accuracy.

Conclusion

A fixed asset register is really helpful especially when an organization is equipped with a lot of assets. However, various types of the register are available, so it is important that you figure out first which type of fixed asset register will be highly effective in your organization. The software meets all your requirements shall be chosen over thousands available in the market.

A fixed asset register shall be reviewed at a regular interval to make sure that it can present your company’s financial asset position in the right manner.