First, let us discuss “What is an ERP?” briefly. We mentioned it in our previous blog, so we can discuss it again. The ERP acronym stands for Enterprise Resource Planning. ERP integrates core business processes such as finance, HR, manufacturing, etc. into a single system. It facilitates enhanced business efficiency, encourages business growth needs, provides versatile real-time decision support, reduces limitations in legacy systems, and provides a competitive advantage through quicker access to reliable and relevant information. Now we can discuss How to Handle and manage the entire lifecycle of the Fixed Assets with ERP Software.
According to Investopedia “A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E). They are also referred to as capital assets.”
Yes, That’s all Fixed assets. There are two general classifications of assets, of short-term assets and of fixed assets. Those that stay on the books for less than one year are short-term assets. Short-term assets include products such as cash and office supplies that are widely used in a short period of time. Fixed assets are those assets that have been in the books for more than a year. The IRS describes fixed assets as assets or facilities with an expected life of more than one year. Fixed Assets Management software is an important tool for managing the company’s assets, managing the entire lifecycle of fixed assets, and assessing the impact of financial choices.
Asset accounting lists and evaluations
Asset history sheet: The asset history sheet demonstrates the production during the financial year of acquisition prices, costs of generated products, book values, and depreciation. It can also be produced and released on a monthly basis, i.e. with current monthly figures of transactions.
Fixed asset history: Fixed asset history shows the individual entries during the specified duration that have been posted to the fixed asset.
Depreciation movement schedule: Using the Depreciation Movement Schedule, the depreciation evolution of the previously selected time period can be produced in the previously selected production currency.
Depreciation planning: Scheduled depreciation forecasts for the next seven fiscal years
- The retirement list
- List of takeovers (acquisitions)
- Fixed asset growth
- Sheet for Asset History (imputed)
- Asset History Fixed (imputed)
- Schedule of Depreciation Movement (imputed)
The following calculation methods are available:
- Depreciation instantly
- Value of the net book by remaining life
- The depreciation rate of the value of the acquisition
- Net book value depreciation rate
- Value of acquisition through the useful life of the fixed asset
- The acquisition value of the fixed asset over its remaining useful life
- Net book value through the fixed asset’s useful life
Benefits of Fixed Assets Management Software
Maximized Return on Investment
An asset is constantly monitored to increase its life and when an asset works well, it also increases investment returns.
This is one of the most significant advantages & features from which maintenance can be scheduled. A sudden failure can be really risky for a business and it can put a dent in your wallet. This software will, however, help
you prevent these forms of maintenance.
Effective decision making
When you have all the important data at your fingertips. This will allow you to make an efficient option. Here is an example, one machinery does not function properly and in that case, you can make a better decision by software, either it needs to change or not, taking more maintenance than necessary.
Eliminating paperwork & human errors
There will be less paperwork, which will lead to fewer human errors, as it is handled on a cloud-based basis. It is easy to scan & store digital documents. They are easier to get and when every document is online, so there is also no risk of deletion. As straightforward as that!
Identification of Ghost Assets
Ghost assets are still seen in the tax & account book of an entity, regardless of disappearance, or dropping out of use. If you conduct proper and precise asset monitoring with an asset management system, you will easily discover ghost assets and if an audit is conducted on a regular basis, there will be no ghost assets in the future.
Organizations must reduce their dependency on spreadsheets to measure depreciation values and must use Fixed Asset Management Software instead of producing reliable results much faster. Axolon Fixed Asset Management Software in Dubai, Bahrain, and other countries such as Qatar, Saudi Arabia, and Africa can be more successful in the long-term future of your company. In addition, our user-friendly interface design and cloud-based model make asset management a preferred option for companies.