If your company owns fixed assets, you probably have someone in charge of fixed asset tracking and accounting.
Do you know what information about your fixed assets you should be following? We've listing some of the basic information you should be tracking, preferably with a software package designed for that purpose. These programs also have a variety of reports that can be run, providing management with required information for insurance and tax purposes.
What type of information should you be gathering for your fixed asset tracking?
- First is the asset number. Your assets should all be tagged with a unique number. These asset numbers can be set up to meet your needs. For example, you can use a system that matches groups of number to groups of assets. Computer, for example, could all begin with a “C”. Desks, on the other hand, might begin with a “D”. This way, when you print a list of your assets, similar items are grouped together.
- Next is asset location. You should know where your fixed assets are. Each site should have its own location number. For example, if you have a remote office, all of the assets there would have the same location number. If you have different departments, you can give each department its own location code. The value of this is that you can obtain a report that sorts fixed assets by locations. This information can be invaluable. For example, if there's a fire in an office, you will be able to generate an inventory of what was located there.
- Next is a note file about the asset. This can be an invaluable source of information. You should have the capability of making a note. A serial number is one piece of information. Last repair date or unique information about the asset is another.
- Some companies like to track acquisition date and acquisition cost of the fixed asset, along with the accumulated depreciation. This information is often used to estimate the current value of the fixed asset and the anticipated date the asset will most likely need to be replaced.
Overall, fixed asset tracking is important to manage and maintain your assets. The process provides basic information on what you own, where it’s located and what its worth.