Most companies know in their corporate hearts that, although taking a physical inventory of assets is a major effort, once this job is complete and the books equal the real assets, there is a sound system in place to maintain the records.The tendency amongst senior management in many organisations is simply to look at the initial costs of a fixed asset inventory service or a fixed asset management software solution.

These costs can be substantial and managers can always find a reason to avoid expenditure on something that they perceive as being of little immediate or practical value to the company.  What they fail to appreciate is the bottom line benefits of fixed asset accounting. Their focus should not be on the cost of the solution, but on the cash flow boost to be gained as a result of not paying unnecessary taxes and insurance premiums.This very real return on investment often gets overlooked when looking just at the top line costs of fixed asset management packages.

An adequate asset tracking solution can pay for itself surprisingly quickly.  Uncovering unrecorded retirements can result in an immediate write off, reducing income taxes, property taxes, and insurance premiums.Indeed, armed with the information you can determine whether you are over or underinsured for example by accurately matching your insurance coverage and premiums with actual assets.

The asset audit can also reduce the need to spend money on additional equipment by reassigning idle equipment instead of having to purchase brand new plant or machinery. Equipment and assets that are leased can also be tracked and managed far more effectively and efficiently. Lease termination penalties can be avoided by simplifying the process of tracking those assets and making sure equipment is returned in a timely manner when the lease term expires.  Even if you don’t want to use external or specialist suppliers, decent inventory management  software will ensure that your company records are more accurate and will pass even the most stringent auditing regimes.