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Asset management is a system that businesses use to keep tabs on their various assets, from office furniture and laptops to inventory and investments. Every business, no matter how small, needs an asset management system in place to ensure their money is being used to its greatest potential. Keeping track of your assets will also help you get through those audits! But managing assets properly requires a solid plan. If you’re starting to think about your asset management needs, check out the following tips to start off in the right direction.
Develop a Plan for Tagging New Assets
The first step in building an asset management system is to implement an asset tagging process flow. When you acquire a new asset, categorize it by asset type—for example, your physical assets may include categories like audio-visual tools and technical equipment. Then, give each asset an identification number and affix it with some form of barcode or ID tag. This will make it much easier to manage each unique asset when it comes to maintenance and reordering. Be sure to assign an appropriate type of label to each of your assets. For example, you may need a durable asset tag for equipment that will be exposed to harsh environments or cleaning chemicals. Once new assets are tagged, enter them into your tracking system right away.
Conduct a Complete Inventory
If you’re just getting started with asset management, it’s important to take an inventory of your existing assets so you can develop an effective system. Skipping this step will lead to serious inaccuracies down the line. For each asset, note its value, location, expected lifespan, and where it came from. Noting the value of each asset is essential for taking advantage of tax benefits since most physical business assets, like vehicles and computers, can be written off as expenses on your taxes. It’s also a good idea to include additional costs that may come up over the life cycle of the asset, such as maintenance expenses and disposal fees, to ensure it is financially beneficial in the long run. So, conduct a complete count of all your business assets as soon as possible. Vend recommends using stock counting techniques like cycle counting, scanners, and store mapping to minimize business interruptions and reduce the risk of errors.
Take Advantage of Asset Management Software
You can keep track of your assets on simple spreadsheets, but these are extremely time-consuming to manage and highly prone to human error. Fortunately, there are many digital tools and solutions that can streamline the process. Asset management software (AMS) can keep much more detailed records than manual systems, so you can access everything you need when audit time rolls around. Look for asset management software that will work for your needs today, but also grow with your business over time. When searching for the right asset management tools, look for software that can track asset locations, maintenance schedules, and depreciating value. Asset management solutions that store data in the cloud are ideal because these prevent data loss and allow you to access your data from anywhere. eLearning Industry recommends reading software reviews and comparing prices online to find the best AMS provider for your business.
Use Asset Management for Financial Planning
The data from your asset tracking system can help guide your future business decisions. For example, your asset data will show you which assets are saving you money and which are costing you over time. You’ll also be able to see how long your assets last. All of this information can help you discover where your business budget is going and decide where and how to invest your money for the greatest returns. Not only that, but asset management will help you take a proactive approach to your asset maintenance needs so you can avoid costly downtime or expensive repairs.
Don’t wait to implement an asset tracking system in your company. Keeping track of your small business assets will help you save money in the long run, offering peace of mind that your valuable assets are within easy reach. With the help of software solutions, asset management is much easier than many people think, so get started today!