To define Fixed Asset Management in a nutshell, it is the process that involves the tracking of Fixed Assets, their Accounting, Preventive and Corrective Maintenance, Tracking and Theft Deterrence. It is always a challenge for organizations to accurately track the location, condition, and status of their fixed assets, especially for organizations which operate from multiple locations. To maintain a proper Fixed Asset Register whilst simultaneously complying with Accounting and Taxation standards is a challenge for an enterprise of any size.
It is a prerequisite for an enterprise to keep their machines running in the right condition so that they can function at their optimum capacity. It is expected that the concerned personnel keeps an eye on the performance of an asset throughout its life cycle so that preventive maintenance and breakdown repairs can manage properly and at the right time. To achieve such goals and align their Asset Management processes with international practices, companies need to implement state-of-the-art Fixed Asset Management Systems.
An effective Asset Management System like ebizframe can help in determining the current value of all existing assets of an organization and defining various types of assets as per user requirements like Plant, Machinery, Land, Building, etc. Moreover, it can produce targeted Financial Reports, providing Finance Managers with insights for Tax Planning, efficient Asset Allocation, as well as future asset-acquisitions/disposals.
A robust Fixed Assets Management Solution like ebizframe makes the management of capital expenditures a lot better for enterprises and it eventually maximizes their return on assets. Assets include plant and equipment, buildings, handling equipment, vehicles, computers, furniture, etc. The Fixed Assets Module in ebizframe ERP is tightly integrated with Purchase, Inventory, Maintenance, and Finance Modules. Through this, organizations can easily take care of Preventive and Breakdown Maintenance by creating Maintenance Schedules and generating Maintenance Requisitions. ebizframe Fixed Assets Management Solution can also manage the Plant Maintenance using in-house maintenance team or third-party service providers or a combination of both.
For most companies, Fixed Assets involve a substantial investment. Miscalculating depreciation values can lead to severe consequences such as errors in Financial Reporting or failure to comply with statutory requirements. Organizations must reduce their reliance on spreadsheets to calculate depreciation values and must take help of an Asset Management Software instead for generating accurate results much faster. Users can select either the Straight-Line Method (SLM) or the Written Down Value Method (WDV) to calculate depreciation. Users can define Item-Level, Group-Level and Sub-Group Level depreciation. Even the impact of shifts can be incorporated. Moreover, accumulated depreciation can be calculated which reflects the depreciation of an asset over a period of time. In case an organization is spread across multiple locations, ebizframe allows for concurrent asset-counts while centralizing results.
To know more about ebizframe Fixed Assets Management, please write to us at firstname.lastname@example.org.
About the Author
Ashutosh has done his B.Tech in Electronics and Communication. He started his career with a Digital Marketing company. To refine his writing style and blend it with other niche markets, he joined ESS’ Marketing Communication Team to come up with savvy and engaging content for ESS’ flagship product: ebizframe ERP. Apart from his professional calling, he loves penning down his abstract reflections whenever the urge is overwhelming.