Why Asset Management Is an Essential Component of Your Business
Every business has assets, whether it be the printers in the organization’s main office or the construction equipment at the work site for building a new branch office. Keeping track of all of this equipment is a critical aspect of your business’ operations. This process is called asset management, and it is a business function that should not be overlooked or brushed aside. Here’s why:
Keeping track of all of the equipment your business owns can be a time-consuming process, particularly if this process is not very organized. Setting up a complete asset management system, while it will take some time to initiate, will save your business a lot of time over the long term. Aim to have all of the documentation related to each piece of equipment stored all in one place. This can include maintenance schedules, warranty information, operations manuals and any other related documents. Getting organized from the start can save time whenever you need to reference any of this information.
Extends the Life of Your Equipment
Performing routine maintenance on your equipment is the best way to keep it in proper working order for as long as possible. From cleaning the coils on the back of the break room fridge to conducting forklift battery maintenance down at the construction site, proper maintenance and care will make your equipment last longer and can save your business a lot of money on replacement costs. Be sure that your asset management system includes the recommended maintenance and care schedule for each and every piece of equipment in your inventory. Keep a master calendar of all of the maintenance schedules so that you always know what needs to be done.
Streamlines the Accounting Process
When it comes time to file your business taxes at the end of each year, calculating equipment depreciation is an important aspect of your business’ finances. Having a comprehensive asset management system in place will greatly assist your accountant in completing this task, saving a lot of time in the process. The system also increases the likelihood that everything will be accounted for properly and that nothing will be overlooked or left out.
Eases Regulatory Compliance
Government regulations and guidelines are put in place to protect the safety of both your customers and your employees. By keeping track of your business’ assets, you’ll have a much easier time providing the records and documentation when it comes time to prove that your business is complying with all of the necessary safety regulations.
In today’s modern age, there are a variety of software applications on the market that are designed to help streamline the asset management process. Rather than keeping stacks and stacks of documentation. Many of these software programs enable you to scan the documents into digital formats so that you no longer need to maintain extensive filing cabinets full of paperwork. With the growing popularity of cloud-based services, many applications even allow you to access those documents from anywhere in the world with an internet connection.