Fixed asset management is an accounting process that seeks to track fixed assets for financial accounting, preventive maintenance and theft deterrence. Organizations face a significant challenge to track the location, quantity, condition, maintenance and depreciation status of their fixed assets. A popular approach to tracking fixed assets uses serial numbered asset tags, which are barcode labels for easy and accurate reading. The asset owner can take inventory with a mobile barcode reader and then produce a report.
The available software packages for the management of fixed assets are marketed in small and large companies. Some enterprise resource planning systems are available with fixed asset modules. Some tracking methods automate the process, such as using fixed scanners to read barcodes on rail freight wagons or by adding a radio frequency identification (RFID) tag to an asset.
Asset tracking is a major concern of all businesses, regardless of their size. Assets are defined as any 'permanent' object that a company uses internally, including but not limited to computers, tools, software, or office equipment. While employees may use a specific tool or tools, the asset ultimately belongs to the company and must be returned. And therefore, without an accurate method of tracking these assets it would be very easy for a company to lose control of them.
With advances in technology, asset tracking software is now available that will help any size company track valuable assets like equipment and supplies. According to a study published in December 2005 by the ARC Advisory Group, the global business asset management (EAM) market was then estimated to be about $ 2.2 billion and was expected to grow by about 5.0 percent year to $ 2.8 billion in 2010.
Asset tracking software allows companies to keep track of the assets they own, where they are, who has them, when the check was performed, when it should be returned, when it is scheduled for maintenance and the cost, and the depreciation of each asset.
The built-in reporting option in most asset tracking solutions provides predefined reports, including assets by category and department, check-in / check-out, net asset value, assets overdue, audit history, and transactions.
All this information is captured in a program and can be used on both PCs and mobile devices. As a result, companies reduce expenses through loss prevention and maintenance of improved equipment. They reduce new and unnecessary equipment purchases and can more accurately calculate taxes based on depreciation schedules.
The most closely monitored assets are:
• Plant and equipment
• Buildings
• Installations and accessories
• Long-term investment
• Machinery
• Vehicles and heavy equipment
Asset tracking software is often used to track both the information about an asset for financial reporting purposes and the physical location of an asset. Financial reporting elements of monitoring are often related to accounting procedures and valuation needs, but may or may not be related to location information.
Asset location localization software often adopts one of two approaches to monitoring asset locations. The first approach is to use a physical tracking device to provide physical location data. This can take the form of a Bluetooth tracking beacon or a GPS tracking unit. The second approach is to track a place for the "responsible party". In this approach, the software uses peer to peer assign and accept procedures to enable individuals to accept responsibility for the assets. The location of the asset is then inferred on the basis of the person who has accepted the liability.