Can a robust asset register be effectively created and managed – one that will securely track and manage your assets and make your life a whole lot simpler? Sounds unlikely but it’s not, and here are 10 reasons why you should consider one:
1. Improved corporate governance
Red tape is everywhere these days and as your business grows it just gets worse! Today companies of all sizes are scrutinized internally by regulatory boards and externally by investors and government agencies. In all aspects of your business, transparency and accountability are essential. Why risk the chance of catching Big Brother’s eye, or expose your financial data to possible tampering, by relying on just spreadsheets or fixed modules of legacy systems?
2. A robust audit trail and increased security
A specialist fixed asset management system will track and record every detail of every action ever made by any user. This might sound a little overwhelming, but it makes proving the security and integrity of your business’s data or reducing costs a whole lot simpler and easier to justify.
For example, imagine if you had four employees conducting audits and each employee spends about eight hours on the audit, with two audits conducted every year. At an employee wage of R150 an hour, manual audits will cost you at least R9 600 a year! But if you add permission-based access and have an automated asset verification processes in place, you will greatly reduce the cost implications of searching for assets…
3. Reducing inaccurate depreciation calculations
Without a specialist asset management system, you’re opening yourself up to the inaccuracy of human error, clunky spreadsheets or creaking legacy systems. Or if data calculations are inputted incorrectly or your system is throwing out less than useful information, calculations will be skewed and depreciation values will be way out.
4. The technical stuff
Without a specialist fixed asset management system you will be unable to link ‘parent/child’ assets (for example the computer is the parent and the license is the child). This makes it difficult and sometimes even impossible to accurately track and manage important hierarchical dependencies.
5. Making the world a smaller place
If you have a global business, a specialist asset management system will need to be robust enough to have multi-book capabilities to allow core asset information to be shared across any number of books with different sets of figures, enabling compliance with both local and group depreciation policies.
6. Watch that report!
Who said reports were hard work or time-consuming? A specialist fixed asset management system takes all the pain out of composing reports and will forecast and incorporate both standard and customised reporting and forecasting templates for quick access to, and the extraction of, data. Now month-ends audits don’t need to be something feared!
7. Doing away with dodgy data
Are you 100% confident in the integrity of your data? A specialist asset management system has strict security features in place to address issues of input errors and inaccuracies and automates the entire fixed asset management process. More time saved!
8. Do more with less
Streamlined asset management is critical to business success. A central asset register, that’s accessible across multiple departments, can provide information at just the touch of a button in a consistent and easy format. In addition, dedicated asset management system can prevent you from over-purchasing software licenses and save you significant sums as well as avoiding the legal risks associated with under-purchasing.
9. Realistic cover
Despite the pain of escalating insurance premiums, the majority of businesses are actually over insured, with less than 40% of assets on the register easily identified during a physical audit and an estimated 20% no longer in existence. The endemic failure to maintain accurate asset registers means companies are insuring assets they no longer own! Where is the sense in that?
Streamlining contract management is an important aspect of managing supplier relationships. Badly managed contracts cost companies who end up paying for assets that are often expired or no longer even on site! To prevent running up these costs or having evergreen contracts, you need to make cancellations and amendments at the right time, when they are needed, rather than, for example, two years down the line. With an asset management system like CASM, you can link contracts to assets and automate alerts to ensure key contracts and addendums never go forgotten.