Thursday, January 05, 2012 under Accounting software and technology, Fixed asset management

Fixed asset audits can seem intimidating when your company is faced with the prospect of cataloguing each piece of property, plant and equipment individually – and the task doesn’t end there. After that comes more work, such as calculating and checking depreciation schedules. Items that are missing must be flagged, while those that are in use but not on the books (known as zombie assets) must also be dealt with.

Attempting to accomplish all of this manually opens the company up to human error that could result in higher taxes and insurance premiums or even make the organization look older on paper, which could be a problem when it comes to securing capital.

Using barcode labels, inventory barcode scanners and fixed asset management software can streamline the process. Asset software acts as a central data repository for items that may be spread out across multiple locations while ensuring compliance with corporate governance regulations. Automation reduces the risk of human error and frees up staff to attend to other tasks.