Asset tracking has a variety of business uses and can bing benefits to corporations of all sizes. Obviously, the immediate advantage of these tools is to track the use of corporate assets, recording the location, age, condition, value and other details of a wide range of fixed assets. That exercise in itself can generate impressive costs savings, as a company’s fixed assets can be substantially greater (both in physical and financial terms) than you might think. Capital equipment like furniture, computers and other office systems can sit there, unknown, swallowing dollars. Asset tracking can be invaluable in maximising asset utilisation, eliminating unnecessary purchases of new equipment and ensuring proper tax accountability and depreciation.
Historically, the use of inventory depreciation software has been associated with large enterprises like the big auto-makers such as GM, Ford and Chrysler who were “early adopters”. They initially sought solely to track their own capital assets, but later started applying asset tracking to the role of tracking vehicle parts from various suppliers for quality control and maintenance-related purposes. More small and medium-sized US businesses have been attracted by the business benefits of asset tracking technologies to save cash in the current climate. Technology helps too. Simple hand-held barcode scanners or RFID readers can collect information from each asset saving considerable time, effort and money compared with doing it manually.
Relatively inexpensive, automated fixed assets accounting tools have speeded up adoption by a variety of businesses. The universality of PC technologies, mobile computers, wireless technologies and handheld devices have resulted in the provision of asset tracking tools more mobile and easy to use. Asset management tools can help US companies of all sizes keep a lid on capital costs at a time when the economic environment requires them to be conservative with their expenditure and squeeze as much ROI out of every penny spent as possible..
Sarbanes- Oxley is certainly all-pervasive in US business and the ongoing implications of SOX when it comes to fixed asset tracking continue to expand. The current focus on the accuracy of the balance sheet and a possible move to further disclosures about the fair value of assets means that US companies will have to get much more serious about tightening up their internal controls over fixed assets in the next few years.
Asset tracking may be a time consuming job and if done thoroughly and professionally, but there are software packages and new technologies available today that will speed the process considerably. Fixed asset accounting packages will quickly and reliably allow you to determine the fair value of assets that you can find and inspect, assuming of course you can indeed find and inspect them! Many commentators consider that “Phantom Assets “or “Zombie Assets” as they’re known will be the next major focus for Sarbanes-Oxley. Ghost Assets” are on the books, but just don’t exist in the real world, while “Zombie Assets” are present physically but have nothing in the accounting records to support the fact that they are indeed there. when a detailed inventory is taken, these “Ghost Assets” can be as much as 15% of a firm’s total Property, Plant and Equipment (PP&E).
In order to be satisfied that your internal controls are working across the board, auditors are bound to focus on PP&E as evidence that you really are fully SARBOX compliant. That will require some investment up front, as entries to the property ledger will need to be readily identifiable, whether through barcode scanning or the alternative of RFID asset tracking. While the initial cost for RFID tags may seem relatively steep compared to manual or barcode systems, the potential cost savings in reconciling physical inventories to the books is substantial and could more than justify the expenditure.
On top of building a sound platform to allow effective competition for business in a US economy that still appears to be in the doldrums, company accountants have to ensure they remain up-to-date with the SARBOX compliance requirements for their sector. CEOs and CFOs must be in a position to certify with certainty that the company’s books and records do not contain untrue statements and fairly represent the company’s results or face severe penalties for non-compliance, false declarations and other SARBOX violations.
For that reason alone it’s wise to invest in an up-to- date asset tracking package. Given the level of accounting complexity required in the current US legislative and business environment, spreadsheets can quickly become complex and difficult to verify. Integrating a spreadsheet with other enterprise level systems and tracking asset changes or producing a clear audit trail is also difficult. The problems caused by a lack of adequate fixed asset accounting packages extend beyond possible SARBOX compliance issues. What might be the scenario if your company has to make an insurance claim for example? Without adequate asset tracking packages that incorporate the latest fixed assets programs it’s perfectly possible that a ten-year old PC for example might still be on the asset register. The insurance assessor would smell a rat and become far more inclined to challenge every other item on the register.
The event that caused the initial claim moves from being trivial to life-threatening to the company because the inability to confirm the existence and location of an asset will delay the insurance compensation payment. The only sure way US corporations can protect themselves legally and physically is to use a highly accurate, highly verifiable asset register. With this single record in place, it is a simple process to ensure any changes, such as scrapping, selling or relocating an asset, are updated within the system.
Preventive Maintenance can be based on well meters based on daily, weekly and monthly.. Have a quick view summary details of rent..
CMMS provides you have the flexibility to implement the functionality you need from the product itself..
Decrease in accidents.
Consultations flexible and customized reports can be properly generated.. Its why a company that aspires to be more competitive and efficient to adopt technical and systems in place to ensure continuity their production processes and consistency in quality their products and services.. In general, most of the major faults begin wear with a minor component failure that creates a problem of magnitude far higher..
With a minimum input and maximum efficiency, work orders are generated from a central console for all sites through a web interface with all features.. It should define the needs of your system. Maintenance tasks are better organized. The maintenance technicians have more responsibilities..
The new systems offer better automation of work orders and some can make requests via Intranet or Internet.
Include general notes and security with each task.. Your acceptance and conviction is important during the selection process and a critical factor in the implementation process.
Establish a CMMS implementation team
For those responsible for the planning of space and movements in property, a CMMS systems that communicate with such CAD packages are useful.. This strategy must start with the philosophy that there is need for a CMMS and that there will be sufficient future profits to support the effort and cost of implementation.
CMMS Strategy
Resource failures can mean a cost in revenue due to lost productivity.. Maintenance processes determine what information should be in the system and what the reports and documents that must generate.
A CMMS is part of the information system, administration and control for maintenance management.. Facility Management Software helps you so you do not wind up spending human resources and work times of machines..
VisitFacility management software for more information(www.hippofm.commmmm)
This really isn’t an easy one to discuss but there do seem to be ways that you can help to boost the business without spending too much money. These are just a few tips that you may or may not want to follow to help make the business better.
Please Employees
So many people do not do this enough but the thing is, it is very important to keep the employees happy because it is a great way to help push the business on and on. continue reading »
Despite the debacle of Copenhagen and the growing band of “nay-sayers” about man-made global warming, governments around the world remain committed to Carbon Reduction Commitments (CRC) that many intend to pass into law. That’s certainly the case with the UK government, which is sticking to targets of reducing greenhouse gas emissions by at least 80% over 1990 levels by the year 2050.
Companies that achieve reductions will be financially rewarded and those that don’t will suffer the consequences. continue reading »
Asset tracking has a variety of advantages and benefits for companies of all sizes.These tools to track and monitor the use of corporate assets, recording the location, age, value and other details of a wide range of fixed assets.An organisation’s fixed assets can be more extensive and more costly than you might think, including capital equipment like furniture, computers, phone systems, printers and other office equipment.This information can be invaluable in eliminating unnecessary purchases and ensuring proper tax accountability and depreciation.
Asset management software had been associated with large enterprises only, especially the big auto-makers like GM, Ford and Chrysler who were “early adopters”. They initially sought solely to track their own capital assets, but later started applying asset tracking to the role of tracking vehicle parts for quality control and maintenance-related purposes. continue reading »
Asset tracking is often considered to be an imposition on US businesses purely as a consequence of SARBOX, but asset tracking is more than an accountancy compliance issue.It’s a vital part of informed and sound management. Assets must be managed financially and physically and to do that you require knowledge of just where all your assets are.Many companies rely on a conventional spreadsheet approach to try to keep track of their fixed assets to ensure the company is compliant with national and international regulations.
That’s particularly important with IT fixed asset tracking.IT equipment is at the heart of any business today and often changes during its operational lifetime.Components can be switched, replaced or upgraded.Software especially is frequently installed, uninstalled or upgraded. continue reading »
It seems obvious to say so, but asset tracking is an essential part of any centralised asset register.Aside from issues of compliance with national and global accounting practice standards, business literally cannot afford to rely on piecemeal policies and outmoded practices. Doing so will leave a gaping hole in corporate value and expose the company to potentially costly liabilities. Only through the implementation of rigorous asset acquisition and disposal policies and recording detailed information about all the company’s hardware and software assets can an organisation retain full control over those fixed assets and understand its true business value. continue reading »
The past 10 years has seen the development of Radio Frequency Identification (RFID) rocket, making it easier for all companies to track and manage their fixed asset tracking. However, the current technology is not yet fully optimised for all businesses. Presently the technology is overly expensive and is only really used at the manufacturer stage or on more expensive products. continue reading »