If you’re looking to save money and time while keeping your financial records up to date, tracking your fixed assets is a great way to start. From the furniture in your office space to equipment, fixed assets are an expensive part of keeping your business running. For this guide you’ll learn how fixed assets are tracked and how you can go about finding asset-tracking software that’s going to fit your needs. In addition, things like asset tag use, entering data and the differences between RFID and barcode for asset tracking can have a major impact. It’s time to learn how to track assets!
Choosing a Fixed Asset Tracking Software
Before you begin the asset management process, you’re going to need to determine the right fixed asset tracking software for you. In order to find the perfect fit, you’ll need to think about multiple aspects of your software.
- Functionality: The type of software you’re going to need will depend on what type of asset you’re trying to keep track of. Scheduling maintenance and keeping track of depreciation are two features that your organization may find of use.
- User-Friendliness: Having to extensively train your workforce can be a pain, so make sure that your asset-tracking software of choice is easy to use.
- Scalability: As your business becomes larger, there will be more assets that you’ll need to track. Find an asset-tracking software that can grow with you.
- Reporting: From scan reports to reports on depreciation and maintenance, these reports will give you a deeper understanding of how your organization is running.
- Support and Training: From our tutorials on Grey Trunk RFID to explanations on how the software works, we have plenty of resources to help your business easily use our software.
Adding Asset Tags to Equipment
After your software is taken care of, it’s time to start putting the tags onto your assets. Asset tags are an important aspect of finding your equipment in a timely and efficient manner. Take the following steps when you’re applying your tags:
- Choose the Right Tags: Different tag materials will work better in some environments than others. From polyester and plastic to metal, there are many materials that can be used. Will your tag need to be durable thanks to the rough conditions it’s in? There are many questions you’ll need to ask yourself during the initial steps of this process.
- Unique Identifiers: To identify your tags, each one will need its own barcode or serial number so that you know which one is which within the Grey Trunk RFID software.
- Placement: When placing your tag, try to find a balance between it being secure yet easily found. For a computer, the tag should be on the bottom or back so that it’s not in the way.
- Documentation: From asset descriptions to their location and identification information, make sure that you’re putting key info into the system as you enter in your assets.
Data Entry and Management
To track your assets well, the data needs to be entered in properly. Here are a few tips that you can follow when entering in the data for your assets:
- Initial Data Entry: As you set up the Grey Trunk RFID software, check that the info you’re putting in is accurate. Purchase dates, asset names, categories, costs, conditions and locations are all things you’re going to want to monitor.
- Regular Updates: If your info isn’t up-to-date, it’s not going to be very useful. If an asset is disposed of, relocated or put into maintenance then you’ll want to make note of that.
- Verification: Comparing your physical inventory to what’s in your database is a good way to make sure that everything is accurate.
- Standardization: Categories and some kind of standardized naming will make your asset-tracking inventory easier to navigate.
Conducting Regular Fixed Asset Inventories
Taking inventory on a consistent basis will help to ensure its accuracy. This can be done by taking these steps:
- Schedule: Whether it’s annual or biannual, set up a time to take inventory of your assets. The scale of your inventory might change how often this needs to be done.
- Prepare: Are your assets records recent and do you have the equipment you’ll need? Get your RFID readers and barcode scanners prepared.
- Team Coordination: While assembling a team to keep track of inventory, make sure that they understand the process/have been given the training they’ll need.
- Physical Count: From tag numbers to locations, conditions and a count of your assets, take note of these things. From there, you’re going to compare them to the digital info after a scan and look into differences.
- Update Records: Note the results of your inventory process and change the statuses of assets accordingly.
Barcode vs. RFID: How Should We Track Fixed Assets?
Unsure where to start when it comes to implementing a fixed asset tracking system? Check out these key differences between barcode and RFID so that you can find the right system for you.
Barcode:
- Cost: For the most part, using barcodes will be cheaper than implementing an RFID system, at least in the initial costs.
- Read Range: To scan a barcode, line-of-sight is required and you’ll need to point the scanner directly at the barcode.
- Durability: Barcodes can be worn out or damaged, which is something to keep in mind when purchasing them. This could change how they perform.
- Use Case: A barcode is an excellent choice for assets that you own in small quantities/that don’t move around a whole bunch. They’re also an inexpensive option.
RFID:
- Cost: Although they’re more expensive than using a barcode tag, they provide extra functions that barcodes don’t.
- Read Range: Direct line-of-sight isn’t needed when you’re using RFID tech. You can scan assets without pointing the scanner directly at them.
- Durability: Withstanding tougher conditions than a barcode is one of the major benefits to using RFID tags.
- Use Case: When your assets are worth a high-dollar amount or you have a lot of them, that’s when you’ll want to consider RFID. If your assets move around often then it’s also a good choice.
As you can see, RFID and barcode both have their ups and downs. Consider your budget, location and the requirements you’ll need to meet in order to find the perfect identification solution for you.
Track Your Fixed Assets for Company Benefits!
When your organization begins using a fixed asset tracking system after learning how to track assets, there are several major benefits that they will discover including the following:
- Enhanced Financial Accuracy:
- Accurate Depreciation Calculations: Tracking fixed assets makes it easier to figure out their depreciation. Make sure that your organization is ready for taxes, reports and audits by tracking your fixed assets.
- Reduced Errors: With less human input during the asset tracking process, there are lower odds of mistakes.
- Better Budgeting and Forecasting: It’s easier to budget and plan company spending in the future when you have precise data on your assets.
- Improved Operational Efficiency
- Streamlined Asset Management: Through a fixed asset tracking system, managing your fixed assets will become a simpler process that isn’t as big of a time sink for your employees.
- Faster Audits: If your asset tracking system is easy to navigate and tidy, the process of auditing will be significantly faster.
- Maintenance Scheduling: When you use Grey Trunk RFID, you can track and schedule upcoming maintenance. This helps to keep your assets in top shape, which means that your organization can operate with greater efficiency.
- Cost Savings
- Reduced Asset Loss: Companies that understand where their assets are at and their condition are less likely to have their property be misplaced or stolen.
- Optimized Asset Utilization: Eliminate equipment purchases and rentals that you don’t need by implementing a fixed asset tracking system in your organization.
- Lower Insurance Premiums: When you’ve got a way to accurately track your assets, you can provide more information about all of your company’s assets. This leads to a lower insurance premium for your organization.
- Regulatory Compliance
- Adherence to Standards: With Grey Trunk software, complying with regulations like GAAP and IFRS becomes easier.
- Audit Trails: Keeping an “audit trail” so that your organization is compliant with rules/regulations becomes simpler with fixed asset tracking software.
- Enhanced Decision Making
- Data-Driven Insights: When you have better data, you can make smarter decisions regarding the assets you need, ones that you need to get rid of and things that you’ll need to replace.
- Strategic Planning: Asset management and achieving the goals of your organization go hand in hand. Past data can help your business to plan for future events.
- Risk Management
- Disaster Recovery: To make an insurance claim after an emergency/help your business to recover, you’re going to need solid records of the fixed assets you had.
- Liability Reduction: There will be less accidents/liabilities when your company knows the status and condition of its assets.
Conclusion: Learning How to Track Fixed Assets is Beneficial
Effectively managing your fixed assets and learning how to track assets is an essential part of making your business run smoothly. By understanding barcode and RFID and using a fixed asset tracking software, you’ll be on your way towards accurate data, a reduction in misplaced/lost items and a more efficient workplace. If you’re looking to operate as smoothly as possible, make sure to consider Grey Trunk RFID Asset Tracking Software today!
| About the Author: Colby Weber Colby is Grey Trunk RFID’s Marketing Assistant. He enjoys being able to combine his marketing and public relations skills with his writing and graphic design abilities to assist in Grey Trunk’s marketing efforts. He has one brother, a niece, and two nephews. In his free time, Colby enjoys playing video games and trading card games. He’s also a fan of anime and creating digital artwork on his drawing tablet. |