Why is Fixed Asset Management Important for Your Business?
Fixed assets are also known as ‘tangible assets’ and they are the equipment and inventory integral to the smooth running of a business. They usually include land, buildings, automobiles, furniture, office equipment, machinery, technology and other fixtures and fittings. The management of assets is a process of accounting that allows business to track their fixed assets to more accurately maintain assets, complete their financial accounting and deter theft of business property.
Businesses come under scrutiny by regulatory boards, government agencies and their investors, and it’s very important that your business is fully transparent and compliant with legal demands. You shouldn’t risk the integrity of your financial data by relying on spreadsheets. If your business uses a fixed asset management service, it can rest assured that every action will be tracked and recorded. This way you can justify the accuracy and security of your business’ data and if a situation arises where your business runs into legal difficulties, you can offer the relevant data without a hitch.
Unfortunately, tracking your fixed assets without the assistance of a management programme can result in human error. If the data is inputted incorrectly then the calculations can be completely changed. You can never be entirely confident of the accuracy of your asset management without enlisting the services of a specialist firm. In terms of hierarchical dependencies between assets (also known as parent/child assets), these relationships can be most accurately tracked and managed by a specialist fixed asset management system.
Often businesses end up paying over the odds for insurance, because inaccurate fixed asset registers fail to show the true value and amount of assets owned. If you have a proper management programme, your business can save money by only paying for the necessary insurance. Proper asset management will also allow you to see which assets have depreciated in value and make the relevant decisions regarding the disposal of assets.
A specialist fixed asset management system is usually accompanied by support when it comes to composing reports and forecasts. These tasks are usually time consuming and can present a challenge even for the most financially minded accountant. If you invest in a management system, it will provide forecasting templates that allow you to quickly access and extract data. To find out more about fixed asset management, contact a specialist firm like AssetWare UK.http://www.web247.net/why-is-fixed-asset-management-important-for-your-business/http://www.web247.net/wp-content/uploads/2014/02/business_8.jpghttp://www.web247.net/wp-content/uploads/2014/02/business_8-150x150.jpgTechnologyIncreased Accuracy,Money Saving,Time Saving