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A company’s assets are those items which are owned by a company. The value of an asset is determined by its monetary worth, as well as a number of other factors. Depending on the size and type of your company, you may have many assets or only a few. But no matter how many assets your company owns, or what they’re worth, keeping track of them is a vital part of running a business.
Many different types of businesses use asset tracking, including business organisations, schools, hospitals, charities and the military.
The Benefits of Asset Tracking
Not only does asset tracking allow you to better allocate your company’s resources – of which assets are a part – but it also allows for great control over your company’s finances and financial performance. Assets are taken into consideration when considering your company’s tax status, and can sometimes be ‘written off’. In addition, assets such as computers or equipment are subject to wear and tear, so keeping a track of how and when they’re used, as well as who by, will help you to extend their longevity and retain their worth for longer.
With this in mind, many companies choose to invest in specific asset management practices which are designed to improve asset tracking across the board.
How to Track Your Assets
When thinking about asset tracking, there are a number of factors which you will need to take into consideration. These factors do not have to be financial, and may include:
- How the asset(s) is stored.
- What the asset is used for, when, and who by.
- The initial worth of the asset.
- The expected or visible depreciation of the asset.
- The cost of running or maintaining the asset.
- The risks involved in the asset, such as when the asset in question requires health and safety planning, or security issues.
- The best system or method to employ to track your assets.
Asset tracking, therefore, not only records the worth of an asset, but also its arrival, disposal, whereabouts and the facts of its existence. Asset tracking can be as complicated or as simple a process as you require, depending on the size of your organisation and the number and nature of the assets in question.
Asset Tracking Software
Because of the often complicated nature of asset tracking, many organisations choose to utilise asset tracking software in their day-to-day operations. This type of software has many benefits; most importantly, however, it allows organisations to collate their asset tracking activities into one system, which can be easily accessed and operated by the responsible person.
Asset tracking software is usually conducted by attaching an electronically readable tag to the asset in question, which can be scanned in order to upload its details to your asset tracking software system. After scanning, the movement of your assets can be easily monitored via GPS, and the life cycle of your asset can be recorded. The resulting peace of mind which will arise from knowing your assets are securely and safely managed will be invaluable.