The Importance of Asset Management

Last week we talked about myths of PAT inspections (COPISITEE) and how trackingThis can aid the process of inspecting assets. Now we want to talk about how important a well thought out asset register is for your business. There are many ways of tracking your assets, but a lot of the well-known methods won’t give you the information and data you need to run efficiently.

Lost and old assets

Holding on to old assets and losing new assets are both sure-fire ways of bogging down your business with expenses. When there are many changes in management there is a high risk that knowledge of where items came from and who bought them being lost. This can lead to a business holding onto assets that are either taking up storage space or possibly costing you money through automatic, forgotten about, payments. The problem of losing assets is generally caused by the company not have a proper hold on what assets they own and where they are at any point in time.

For both situations, the problem can be solved by a well thought through asset register. It is a place to keep a list of all the assets you own and can include as much data about the item as you want. The trackingThis asset profiles allow companies to hold purchase and depreciation information, home location, availability, and inspections, to name just a few.

Knowing the depreciation of assets

Tracking the depreciation of assets is a basic accounting need but can also be a great way of planning for the future. It is something you calculate by knowing the lifespan of the asset and spreading out the cost between those years. However, just knowing the expected lifespan of an item can help you plan for the moment when you have to upgrade and get ready for the cost.

Quoting for insurance

A business needs to know how much it needs to be insured for and, if they ever need to make a claim on the insurance, they need to be able to prove that they own the assets.  An article from Benzinga states that 75% of small businesses are underinsured and 40% have no insurance. If you’re under insured, the insurance will only not pay the full claim. However, if you are over insured, then you will be paying the premium, but you won’t get the cover. All of these can be easily rectified with good asset management.

Inspections

An asset register is also a great place to store data about the inspections an asset has had. This can allow a manager to easily check to make sure the inspections are being completed and any potential issues can have appropriate actions taken. trackingThis is able to lead anyone through an inspection with a simple step by step guide to ensure all the relevant details are captured correctly. This can include images or a yes/no checklist making it easy for any member of staff to successfully complete the inspection and management to be safe in the knowledge that it was done correctly and will conform to the specific type of inspection.

Find out more about our asset register at trackingThis - Asset Management and if you have any questions don’t hesitate to give us a ring on +44 (0)1444  222 111.

Published 24 November 2020 11:56 by Dawn Richards