Accurate data and internal tracking are the building blocks for smooth asset management. Proper maintenance and upkeep are necessary to ensure that the assets continue to provide value over time.
Fixed assets are crucial to a business, providing long-term value and further business operations. They are tangible items such as buildings, vehicles, equipment, and furniture. Businesses must account for the depreciation of their fixed assets to take advantage of significant tax benefits and accurately report their financial performance to make informed business decisions.
Challenges With Fixed Asset Management
Managing fixed assets can be difficult for even the most experienced accounting teams. From tracking depreciation to reconciling asset registers, you’ll have your hands full. Keeping accurate records manually is especially challenging because fixed assets disperse across multiple departments and locations. Add the pressure of staying compliant and on top of internal controls, and you have an accounting nightmare!
From ensuring timely invoice payments to monitoring your purchase order processes, so much goes into managing fixed assets. Not to mention that many organizations lack the resources needed to stay on top of everything in a timely manner, avoiding costly mistakes and missed deadlines.
How Does AP Automation Help Manage Fixed Assets?
Managing fixed assets requires tracking, record keeping, and often manual data entry into multiple systems. Just on retrieving information alone, 80% of employees waste an average of 30 minutes daily. By automating your accounts payable processes, you’ll save hundreds of hours and thousands of dollars from data retrieval and manual work, all while making the process more streamlined.
This allows you to reduce the amount of manual data entry and create an audit trail for your asset data. With AP automation, you’ll gain better visibility for your assets and be able to conduct a higher-level analysis in seconds to understand how your assets are providing your business value.
Here are some of the other benefits that come with using AP automation for managing your fixed assets:
- Eliminating human error with improved accuracy.
- Reduced risk of fraud or misuse of assets.
- Saving time and money with increased efficiency.
- Comprehensive reporting for your fixed assets.
- Avoiding costly penalties or fines with improved compliance.
Maximizing Your Software Investment With an ERP System
The cost of implementing and maintaining a fixed asset management system is an investment — not only in the software but in your business. An Enterprise Resource Planning (ERP) system like Sage Intacct provides real-time visibility into all aspects of your financials, including fixed asset management, so you can identify areas of improvement and maximize your profits.
Combining a powerful ERP system with AP automation ensures all asset acquisition, maintenance, and tracking activities are monitored and accounted for in one centralized system. With Sage Intacct, you can be sure your company data is secure, up-to-date, and consistent across all departments.
If you are a small to medium-sized business looking to improve your asset management processes and learn more about Sage Intacct, we are here to help! Contact Trusted CFO Solutions to get started.