How To Save Costs With Fixed Asset Tracking
Struggling to log and report on fixed assets? One of the hardest parts of running a growing company is managing your fixed assets.
- Track maintenance, location, depreciation & cost
- Identify opportunities for cost savings
- Avoid unnecessary tax & insurance
- Manage assets throughout the lifecycle
4 min read
As your business grows, so too does the volume and value of your assets, including construction equipment, office equipment, or vehicles. These assets are critical to the growth of your company, but unless you are tracking them properly, they can prove to be expensive.
How? Because you could be missing opportunities to save during depreciation or take advantage of tax breaks. You may even be overpaying insurance and taxes for assets that no longer physically exist.
The solution is simple: fixed asset tracking.
Fixed asset tracking allows you to track what assets you own, where they are located, when they are scheduled for maintenance, the cost and depreciation of each asset, and more.
What many people don’t realise is that fixed asset tracking can actually save your company money.
You can see opportunities for cost savings
By far the biggest advantage of fixed asset tracking is the ability to see opportunities for cost savings.
If the asset life cycle isn’t monitored closely and analysed on a regular basis, not only could you be missing out on deductions – you may be saddled with a higher total cost of ownership (TCO) for your fixed assets than necessary.
With detailed reporting and tracking of fixed assets, you can capitalise on depreciation changes and eliminate accounting for assets at the end of their life cycle.
An automated asset tracking system lets you do this with ease. With MYOB, you have the option of multiple depreciation methods – either select from a variety of predefined depreciation methods or create your own to meet all your business requirements.
Stop paying for assets that no longer exist
Did you know 15-30% of fixed assets are ghost assets? These are assets that are visible on the books, but cannot be located physically. Added to this are “zombie assets”, which are those that are physically present but haven’t been recorded on the books.
Ghost and zombie assets are a big issue for growing businesses. You could be paying unnecessary insurance fees and taxes for assets that no longer exist – all of which is capital that could be invested in your business growth.
However, tracking important data and details about assets can be difficult, if not impossible, using a spreadsheet alone. How do you record disposals, transfers, labour, locations, materials, and capital investments in a way that lets you easily access and filter the information?
With a fixed asset management solution, you can manage the physical location of assets throughout their life cycle, and easily access the information you need when you need it.
Save time and resources with automated fixed asset tracking
We all know how important it is to streamline processes and save time, and accounting is no exception. Without a fixed asset tracking solution, your finance team is left juggling multiple depreciation methods and calculations for different types of fixed assets. Not only is this time-consuming to do manually, it can also lead to errors in reporting.
Software solutions make it easy. For example, MYOB Advanced can include fixed assets into your reporting directly from your accounts payable purchases, imported from an existing file, or individually.
There’s also a purchase order integration feature that simplifies the conversion process between purchases and fixed assets with an automatic display of eligible purchases. This eliminates data re-entry, improves accuracy and frees up time that could be better spent elsewhere.
Take control early with budget forecasting
Planning to expand your business? Getting ready to start new projects? Chances are you’ll need to replace assets or buy new equipment. Fixed asset tracking helps you plan your budget and resources for growth.
Spreadsheets will only get your company so far. If you want true visibility into your fixed assets – the kind that helps you take advantage of cost-savings– it’s worth investing in fixed asset tracking software. Doing so can help you track and manage your fixed assets through every step of the life cycle, while also enabling you to streamline workflows and free up time for everyone involved.