How effective is your spreadsheet strategy for fixed asset management? It may appear to get the job done, but the world has shifted to digitalizing all business workstreams for improved efficiency and cost savings. Managing fixed assets is no different.
Fixed asset depreciation, the process of tracking the lifecycles of fixed assets and reporting their value for insurance and tax purposes, is one of the most critical financial processes in any business or organization.
A good fixed asset tracking system is multi-dimensional and more than a spreadsheet can accommodate. And the bigger the organization, the bigger the system requirements.
Six reasons why it’s time to say goodbye to spreadsheets
Here are six common signals it’s time to switch from using spreadsheets to manage your inventory control:
- Missing assets: An incomplete reporting of all assets can lead to tax penalties and insurance issues.
- Lack of privacy and data: Using spreadsheets to manage your fixed assets is a huge security risk. What if someone hacked into your system? Would your data be protected? Using software is a safer route for protecting your assets.
- Trouble with scalability: Tracking a growing capital asset inventory on spreadsheets can lead to data errors and communication breakdowns that negatively impact your business. Your need real-time tracking data to make better decisions.
- You consistently discover errors in your data: Have you found errors in your formulas when calculating depreciation? Entering formulas into spreadsheets often comes with a margin of error since the data is manually entered into the document. Not catching those errors can cost your company money.
Fixed assets may appear complicated at first glance. After all, they can be subject to many rules, regulations, and depreciation methods and can be physically located in a wide range of geographical locations, making it challenging to keep an eye on.
And that’s before you factor in cumbersome spreadsheets and information silos.
ERP Software can help you better manage these assets, ensuring cost savings for the company and enhanced productivity for everyone involved. With a streamlined process for tracking and depreciation, fixed assets can simply be part and parcel of a well-run organization, enabling its growth rather than hindering its progress.
Want to learn more about our ERP Solutions? Contact Yeo & Yeo Technology.
Information used in this article was provided by our partners at Sage.