Fixed assets like land, buildings, and vehicles comprise significant investment for a firm. However, most companies tend to overlook the enormous amount of savings that can be made by proper fixed asset management. Companies face major challenges in tracking the condition, quantity, location, depreciation, and maintenance statuses of their assets.
Proper fixed asset management can result in the firm making tax savings while poor fixed asset management can result in tax issues with the government and also lead to inaccurate financial reports leading to bigger issues. Businesses can, however, ensure optimal fixed asset management by use of software designed to implement excellent proper fixed asset management solutions.
Asset management solutions provider Mainpac shares some key advantages of quality fixed asset management software programs.
Most companies use spreadsheets which perform functions satisfactorily but are error-prone. Common errors include errors in formulas and functions, failure to incorporate changes in tax rules and depreciation. It is also difficult to incorporate images and other issues on the spreadsheet. However, fixed management software comes incorporated with tax rules and also generally accepted accounting policies and a huge number of depreciation methods.
Integration with Other Applications
Fixed assets management software offers integration with accounting software which makes the transfer of data from either software seamless. This software saves time which could have otherwise been used to input data manually. This also reduces the chances of clerical errors and typographical errors which can cost the business huge amounts of money.
Depending on the size of the organization companies can get software that befits the size of the organisation. Large organisations require more complicated software which can otherwise be expensive. Small organisations would require less costly and lesser complicated software. As a company grows and increases its assets base, it can add more functionality for a bit more money.
Fixed asset management software has several advantages over manual asset management. Companies are advised to adopt such solutions to ensure this very crucial aspect of the business does not get mismanaged resulting in fraudulent financial reports.