When your business is small, an asset tracking solution may be the furthest thing from your mind, let alone your business wish list – that never-ending list of all the tools and technologies you wish you could fit in your budget. But when your small company grows, new branches are opened, such a system or methodology becomes imperative to safeguard against the risks that come with business growth.
Asset tracking is a method for tracking either fixed or movable physical assets, often both. Sometimes referred to as asset management, asset tracking streamlines the monitoring, managing, and allocating of physical assets through the use of bar-coded asset tags which are affixed to physical assets and scanned for monitoring or validation purposes using barcode readers.
Barcode labels allow individual assets to be assigned a unique identification number, making it simple to easily pinpoint the location of a specific asset, whom it is allocated to, pull up maintenance schedules for equipment, determine the status of an asset or group of assets by simply scanning their barcode labels.
Because barcode labels eliminate the need for manual documentation and data entry, asset tracking eliminates much human error that can result in expensive mistakes that can delay workflows and interrupt or delay audit finalization. Automating the process also saves time and we as we all agree – time costs money – that saving is good for the bottom line.
Organizations that implement effective asset tracking solutions reap numerous benefits some of which we have briefly highlighted above. The benefits of asset tracking include increased efficiency, greater accuracy in record-keeping, improved fixed assets verification and audits, streamlined documentation requirements coupled with substantial time savings, and more.
Asset tracking provides a foundation for seamless workflows and management of multiple business functions. Management of fixed assets is monitored, their maintenance is properly documented, warranties are tracked, insurance issues are handled more efficiently, and many other benefits around audits, custodial issues and fulfillment of accounting standards.
The Asset Label Company with offices in Zimbabwe, Zambia and Botswana uses a refreshing approach to tackle discussions around this important and yet overlooked issue. I would love to hear what you have to say about Fixed Assets Tracking. Are you currently doing it? What challenges are you facing or have faced? Is the function handled by your internal audit department or you outsource it? Do you think you don’t need this because you don’t see how your particular business is affected?
I am looking forward to engaging with you in the ‘My Thoughts’ section below…
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I am passionate about Accounting for Fixed Assets and Business Development. Fixed Assets Accounting has become my Forte. I run a company that is dedicated to empowering organisations to have total and absolute control of their Fixed Assets – The Asset Label Company. It gives me great pleasure and satisfaction to help and assist organisations overcome the hurdles and pitfalls associated with The Fixed Assets Register. We assist organisations to Mark, Label, Scan and Track their Fixed Assets. The Asset Label Company is all about Fixed Assets Accountability and Traceability.