What Is a Fixed Asset Software?
Fixed asset software is a type of accounting software that is used to manage and track the fixed assets of an organization, such as equipment, vehicles, and real estate. The software helps in maintaining an inventory of all your fixed assets, their cost, and depreciation schedule. It’s also designed to help managers and employees create reports for a business based on different criteria like location, type of asset, and current market value.
Efficient systems determine the productivity of a company, not the people. The purpose of the software is to attain this level of productivity to improve the systems of managing company assets, especially in relation to quality and safety management.
A fixed asset software is usually integrated with other types of business management software. This includes accounting and customer relationship management (CRM) systems so that information flow between different departments becomes seamless. It can even provide features like inventory management, accounting, and payroll services.
There are many different types of fixed asset management software available on the market today, and it’s important that you choose a trusted one that will meet all of your company’s needs. Regardless of the type, the main goal of this software is to make it easier for managers and employees to manage the company’s fixed assets, as well as allow them to take advantage of digitalization.
Therefore, it’s important for companies that are working in quality and safety management to understand how this type of software works so they can benefit from it.
Which Departments Can Use Fixed Asset Management Software?
A fixed asset management software can be used by almost all corporate departments, but they’re especially valuable within:
- Accounting
- Purchasing
- Human resources
That’s because they help in keeping track of a company’s assets, which are constantly getting replaced or upgraded due to wear and tear or obsolescence.
Such software can easily manage inventory, track who has borrowed equipment from whom and when it was returned, and who has hired equipment for what period at what cost.
Why Do You Need Asset Management Software?
Cost Reduction Strategy
According to IBM, the advantages of fixed asset software will be crucial for any business because they help in maintaining an accurate record of all its assets. The asset management software finishes audits significantly faster than regular manual recording with pen and paper.
Decision Making Efficiency
This software also helps organizations to make informed decisions regarding their investments and budgeting and whether they need to make any changes in their spending patterns. For example, if an organization has a budget allocated for new machinery, they can use the data in the software to determine whether it’s worth purchasing or not.
In picking the best advantages of fixed asset software: first, look for a system that will allow you to easily track the acquisition date, depreciation method and estimated salvage value of each item.
What Are Examples of a Fixed Asset?
According to Investopedia, a fixed asset is a tangible asset that has a long-term expected useful life to help generate income in business. Examples of fixed assets are those that a company or person will own for a longer period of time, which includes: software, furniture, vehicles, equipment, buildings, and even land.
One of the prime advantages of fixed asset software is that it makes it easy to keep track of the depreciation of such aforementioned fixed assets. This is a very important process, which allows the business owners to know how much they should charge the customers for using the assets and also helps them with the tax preparation.
What Is a Fixed Asset System?
A fixed asset system is an actionable protocol to monitor and keep an accurate record of all your company’s assets. This helps you track if anything in your fixed assets has been damaged or stolen, or if there are any items that need repairs or replacement.
Tracking
A fixed assets software will, first of all, allow you to follow your fixed asset system. It wil track what items are in your warehouse or on the floor when they are needed for a job order or project. You don’t want to be searching for something that should be there but isn’t because you didn’t know where it was stored.
Efficient Use
You also want to make sure that all of your items are being used efficiently and economically so that they don’t get worn out prematurely and need replacing sooner than necessary. A fixed assets software will monitor that for you.
You can use a fixed assets software to make sure that all assets in your fixed asset system are accounted for properly at all times, so there won’t be any mistakes made when calculating taxes or insurance premiums.
What Is the Best Fixed Asset Depreciation Software?
In choosing the best fixed asset management software, Forbes suggests that you look for a system that tracks the acquisition date, reduces loss and theft, among others. Make sure the software is also compatible with your accounting system so it can automatically import data into your financial statements when it’s time to file taxes each year.
Make sure the program is easy to use and doesn’t require special training before employees can start using it effectively. Check, too, if it’s compatible with your accounting system so it can automatically import data into your financial statements when it’s time to file taxes each year.
The following features are also powerful add-ons that you must find in your software: asset accounting management for assets’ current market value, asset inventory monitoring, and auto-scheduling of maintenance tasks.
Best Tracking Features
Lumiform offers you fixed asset management software and the possibility to create seamless checklists and other digital forms for your process flow to run error-free. By maintaining your records and processes through the app, managers can ensure everything is up to date. They can keep better track of improvements and weaknesses, and can easily share their findings with their teams.
Get feedback from your customers easily through the app. Spot problems where they arise.
Customized Digital Forms
The flexible form builder in our fixed asset management software allows you to drag and drop new custom checklists at any time and customize them over and over again.
Scheduling and notifications
The Lumiform app ensures that you and your team stay on schedule. All employees receive notifications for due dates. Managers automatically receive notifications when assignments are overdue and issues have occurred.
Track process management in real time
Monitor the performance of your quality management team and identify opportunities to improve your organization’s process and efficiency.