In fact, the stakes are higher for small businesses when it comes to fixed asset management precisely because they own fewer assets, and the absence of any one of them will be felt more profoundly both from a productivity standpoint and at the bottom line.
Smaller businesses often require employees to wear multiple hats and take on several roles simultaneously. Manual asset tracking – or not tracking your fixed assets at all – might be your current practice. However, both of those approaches are error-prone at best, especially when employees are juggling multiple responsibilities. For those who are charged with tracking assets, they must remain aware of what the company owns, where it’s located and what condition it’s in. Not knowing that information could potentially lead to financial loss, administrative burdens or even tax/legal trouble.
Let’s say you’ve assigned an employee or employees to manage an Excel spreadsheet where they’ve logged all of your fixed assets. Over an average day or week, will they remember to update that spreadsheet with new assets or updates for existing ones? What if they’re pulled away on other hot projects and forget to keep up with the spreadsheet? Or what if they enter a typo, which is an all-too-common occurrence when manually entering barcode numbers? What if that employee takes time off or changes jobs? The point is that it’s very, very easy for items to fall through the cracks and become lost. Theft, either from within or outside your company, is another risk. It’s challenging for employees to keep up with preventive maintenance schedules, software updates, audits and depreciation. Your fixed assets are moving, breathing entities that require continual monitoring. Fixed asset management software performs these functions — and more — in an organized, accurate way. Quite simply, fixed asset management software is the best way for small businesses to track and manage the entire lifecycle of each of their fixed assets.
It may seem daunting to consider investing in fixed asset management software at a time when you’re watching every penny. But the up-front investment is likely to pay off many times over in the long run. Fixed asset management software incorporates the use of barcodes and scanners to keep business owners up to date on the location, condition and whereabouts of their assets, as well as other critical details related to their use like depreciation, maintenance history, insurance policies, warranties, check-in/check-out status and more. Perhaps best of all, the software consolidates all asset-related data in a single location, so users no longer have to spend hours hunting down paperwork or searching through electronic files to find the information they need.