Fixed asset tracking is used by businesses to keep track of long-term assets for accounting, theft prevention, depreciation, and inventory control. It involves identifying assets, choosing a tracking system, and keeping information up-to-date. Involving employees can improve accuracy and prevent issues.
Fixed asset tracking is a process used by businesses and organizations to keep track of all fixed or long-term assets. Companies use fixed asset tracking as part of their accounting process and for theft prevention, depreciation purposes and inventory control. Trying to better track fixed assets means identifying those assets, determining the system to use to track them, and keeping the information about the assets in the tracking system up-to-date. Ensuring that all employees in a company are familiar with the system can also ensure that fixed asset information remains up-to-date.
Identifying everything that requires tracking fixed assets can be the first challenge. Perhaps the easiest way to do this is to start tracking all assets as they enter the company, starting on the first day of business, if not sooner. It is recommended to add information for a new fixed asset to a tracking system before the asset leaves the buyer’s hands. This ensures that an asset does not disappear before its presence is even recognized.
Tracking fixed assets also involves choosing a system for tracking, whether it be a simple computer software program, a bar code system, or a radio frequency identification (RFID) tag system. These systems can simplify tracking by setting up a depreciation schedule and producing reports and information needed for accounting processes. The best tracking system for a particular company will be one designed to handle the amount of fixed assets being tracked, whether large or small.
A key to successful fixed asset tracking is keeping information up to date. For example, if a truck is listed as a company asset but is totaled in an automobile accident, it is no longer an asset. It must be removed from the tracking system. Failure to do so could lead to the vehicle continuing to be accounted for as a taxable asset. If the company is large enough and communication fails, the lack of up-to-date tracking information can lead to other problems if, for example, an employee thinks they will be able to use the company vehicle on a work-related trip, unaware that they cannot. is more available.
An easy way to ensure the tracking of fixed assets is as good as possible is to involve company employees. If an employee uses a company asset, make sure they cannot take it without officially verifying it on your behalf. Establish consequences for failing to officially check in the asset when finished, and emphasize the importance of pointing out any issues with the asset as soon as they are noticed. Otherwise, the tracking system may inaccurately reflect who last had the car and where it was, and this defeats a significant purpose of fixed asset tracking efforts.
Asset Smart.
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