Many people believe that asset management is one of these new ideas created by marketing people to sell stuff we don’t really need. In actual fact this is very untrue and in reality anyone just starting to think about asset management now is going to be very far behind their competitors. Asset management is the process whereby your fixed inanimate objects are all tracked and managed within your organisation. Many directors think they know exactly what’s going on and where in their head and they don’t need to actually have a hard copy.

If you think this isn’t important just think about the health industry and all that expensive equipment that is needed to save lives. Medical equipment maintenance is ideal for anyone who has inveted money in equipment as it allows you to see at a glance what you’ve spent on it since it was first purchased and how much it costs you in maintenance too. With this information you can see at a glance whether it really is time to replace this piece of equipment or whether you should just be spending money on maintaining it. To make sure you’ve got the most accurate information to hand you need to invest in software like capital accounting software. So long as it’s IFRS compliant this type of software would always be recommended above using the outdated spread sheet method.

Tracking your fixed assets The problem with trusting the spread sheet is that it can easily be subject to human error and you could find this gets you into trouble when it comes to audits. When you’re gathering quotes for your business insurance you’ll find the quotes are lower if they can see you have this software as it backs up and values you’re quoting. If you’re valuing your assets above their true value you’ll find your insurance premiums are unnecessarily high yet if you under value them you might find yourself out of pocket if you have to make a claim.