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How Does a Fixed Asset Register Help Your Business?

David Prior by David Prior
November 27, 2023
Reading Time: 3 mins read
How Does a Fixed Asset Register Help Your Business?
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A fixed asset register is more than just a list of assets; it’s a strategic tool that can transform how a business manages its resources. While its applications vary across industries, the core features of a fixed asset register remain universally beneficial. Here’s a closer look at their key features and how they bolster business operations.

Comprehensive Asset Detailing

Beyond basic details, a fixed asset register includes nuanced information like warranty details, supplier information, and condition status. This comprehensive record-keeping is vital in sectors like manufacturing, where the performance and reliability of machinery directly impact production efficiency. By having detailed records, manufacturing plants can plan for equipment upgrades, budget for future investments, and assess the impact of assets on production cycles.

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Maintenance and Lifecycle Tracking

In healthcare, where equipment functionality can be a matter of life and death, the register’s role extends to tracking software updates, calibration records, and repair histories. This holistic view of an asset’s life cycle not only ensures timely maintenance but also aids in predicting future equipment failures. Hospitals and clinics can thus prioritise investments in new technologies and plan for equipment obsolescence, ensuring continuous delivery of high-quality healthcare services.

Location and Usage Monitoring

For retail chains with multiple outlets, the register’s tracking extends to usage frequency and performance metrics of assets. This granular tracking enables efficient asset allocation across different sites, ensuring that each store has the equipment it needs to operate effectively. It also aids in identifying underutilised assets, allowing for strategic reallocation or disposal, thereby optimising the return on investment.

Depreciation Calculation

For IT companies and tech startups, where the pace of innovation renders assets obsolete more quickly, the register’s depreciation calculation feature is crucial. It provides insights into the optimum time to upgrade or replace technology, balancing financial constraints with the need for technological advancement. This feature also helps in budget forecasting, ensuring that the businesses can plan their investments wisely, keeping pace with technological advancements.

Theft and Loss Prevention

Educational institutions, with diverse and often costly assets, leverage the register for risk management. By tracking assets like laboratory equipment and IT resources, schools and universities can implement tighter security measures where needed, conduct regular audits, and educate staff and students on asset protection. This proactive approach not only safeguards the assets but also fosters a culture of responsibility and care within the educational community.

Asset Register or Asset Management Software?

While an asset register provides a solid foundation for asset management, fixed asset management software represents a significant step up, offering a more dynamic, integrated, and automated approach. This software transcends traditional registers by incorporating real-time asset tracking, automated updates, and advanced analytics capabilities. Its integration with other business systems, such as accounting and enterprise resource planning (ERP) platforms, streamlines processes and ensures consistency across various business functions.

One of the key advantages of this software is its ability to automate routine tasks, such as updating asset values and calculating depreciation, thereby reducing the risk of human error and freeing up valuable time for strategic decision-making. Moreover, its advanced analytics tools provide deeper insights into asset performance, utilisation rates, and lifecycle costs, enabling businesses to make data-driven decisions.

For industries that deal with a large number of high-value assets, such as manufacturing or IT, this software is particularly beneficial. It allows for the monitoring of assets in real-time, sending alerts for maintenance needs or potential issues, thereby minimising downtime and extending asset lifespans. In sectors like education or healthcare, where asset mismanagement can have serious implications, the software enhances accountability and compliance through detailed reporting and audit trails.

In essence, while a fixed asset register is a business’ first step towards increased efficiency, powerful fixed asset management software is an upgrade offering a substantial return on investment for businesses in a range of sectors. Want to try it for yourself? Visit FMIS, a respected provider of asset management solutions for more than 30 years.

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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