A business relies on assets for its operations, the condition of those assets determining their value and usefulness. Asset management ensures the business’s assets are useful at all times by monitoring activities that keep said assets in the best shape.
Such careful monitoring of fixed assets requires a proper system to ensure efficiency. This article looks at how NetSuite fixed asset management delivers on that front and why you need it in your business.
What is fixed asset management?
Fixed asset management encompasses all activities in tracking and maintaining a business’ assets. It covers the entire life cycle of a fixed asset, from planning and acquisition through to disposal.
Assets can include vehicles, computers, machinery, furniture, and other business tools. Fixed asset management keeps stock of all assets in the business and ensures they are in proper working order and remain of value through careful maintenance.
Fixed asset management software covers the company’s asset management needs while ensuring accuracy, improving efficiency, complying with industry regulations, and keeping operational costs minimal. Without fixed asset management software, the company’s efforts to manage assets would be tedious, time-wasting, and riddled with errors.
Importance of Fixed Asset Management
The importance of fixed asset management lies in the company’s investment while acquiring them. In most businesses, fixed assets account for more than 40% of overall expenditure. Therefore, asset management is critical in extracting as much value as possible.
In addition, the more assets a company has, the greater the chance of significant losses as keeping track of them can be challenging. Furthermore, fixed assets in a less than ideal state affect overall production, resulting in poor products and services, lowering customer satisfaction, and hurting the company’s reputation.
Benefits of NetSuite Fixed Asset Management
Ensures asset visibility
When starting out, a business has few easily traceable assets. However, with growth comes the need to acquire more fixed assets, which become harder to track using simple spreadsheet software. Failure to account for all your business assets leads to waste, damage, disrepair, and other losses which in turn damages business profitability. By using robust fixed asset management software like NetSuite, visibility and control of all assets is made simple.
Enables real-time asset tracking
It’s necessary to track business fixed assets for security, safety, compliance, and performance reasons. For example, tracking the movements of your fleet of trucks ensures prompt delivery, better route planning, helps manage fuel expenses and improves overall efficiency necessary for profitability. If you had no idea where your trucks were and in what condition, you wouldn’t know whether you were making losses or profits.
Eliminates ghost assets
Your business can lose fixed assets, incorrectly include some, or some of them could get stolen. Without an asset management solution, you wouldn’t know of such developments. Asset management maintains accurate records of all assets and their present condition, which facilitates proper disposal of assets no longer valuable to the business.
Fast data access by relevant departments
Fixed asset management software allows for accurate record-keeping, which other departments, like accounting or repairs and maintenance, can access. Therefore, their decisions are based on accurate records that they can easily access..
Improves asset life cycle management
Understanding an asset’s life cycle through fixed asset management software is easier and more accurate than other manual options such as spreadsheets. Such understanding is invaluable when it comes to future decisions regarding asset acquisition, operation, maintenance, and disposal. In addition, detailed asset performance data helps in future asset acquisition processes.
Eliminates manual management processes
Instead of relying on spreadsheets and whiteboards, fixed asset management software automates asset management processes. This way, there will be minimal errors, easier sharing of information, faster retrieval of an asset’s historical data, and easier adoption of technological improvements and updates to the system. As mentioned, spreadsheets can only get you so far. You’ll soon need features and capabilities that only sophisticated asset management software like NetSuite Fixed Asset Management can offer.
Why choose the NetSuite Fixed Asset Management solution?
Besides the already listed benefits, NetSuite Fixed Asset Management offers easier application for asset managers, which improves their operational efficiency. NetSuite Fixed Asset Management has four main sections:
Asset Creation and Proposal
Asset creation and proposal is the starting point in asset management, where all assets are logged, and any new acquisition follows the right procedure for proper documentation.
For accurate prediction of its life cycle, asset depreciation allows several depreciation models to be applied to an asset.
Asset Revaluation, Disposals, and Reporting
Asset revaluation, disposals, and reporting allow for a review of an asset’s status and the generation of relevant reports to recommend suitable action on the asset.
Lease management can be tricky, especially if other business assets are managed alongside it. NetSuite maintains proper records of monthly lease payments, interest rates, and lease terms to ensure efficiency, cost control, and accuracy in the lease process.
Asset management is challenging for any business. NetSuite Fixed Asset Management presents an efficient, easy-to-use, cost-effective, highly functional, and time-saving solution to fixed asset management.
Without careful asset management, businesses could see their profitability decrease as their assets diminish in value, and fail to serve their purpose in the business, resulting in reduced productivity.
Why choose Eventura to deliver your NetSuite Project?
As an official NetSuite partner, we have successfully delivered countless NetSuite implementations. Our expert team of business analysts, developers, consultants, technicians and support staff can guide you through your entire project, from initial scoping through to implementation and on-going support.
If you would like to speak to one of our NetSuite experts, you can request a free call back here.