Asset formula

Sage: This is why fixed asset management isn’t designed for spreadsheets

How effective is your spreadsheet strategy for fixed asset management?

It may seem like it will get the job done, but the world has moved on to digitizing all business workflows for increased efficiency and cost savings.

Fixed asset management is no different.

Fixed asset depreciation, the process of tracking the life cycles of fixed assets and reporting their value for insurance and tax purposes, is one of the most important financial processes in any business or organization.

The thing is, a good fixed asset tracking system is multi-dimensional and more than a spreadsheet can hold.

And the larger the organization, the greater the system requirements.

Here’s what we cover in this article:

6 reasons why it’s time to say goodbye to spreadsheets

How Capital Software Beats With Spreadsheets

Final Thoughts

6 reasons why it’s time to say goodbye to spreadsheets

Here are six common signals that it’s time to ditch the use of spreadsheets to manage your inventory control:

1. Missing Assets

Incomplete reporting of all assets can lead to tax penalties and insurance issues.

2. Lack of privacy and data

Using spreadsheets to manage your fixed assets is a huge security risk.

What to do if someone has hacked into your system. Would your data be protected?

Using software is the safest way to protect your assets.

3. Scalability issue

Tracking a growing inventory of fixed assets on spreadsheets can lead to data errors and communication breakdowns that negatively impact your business.

You need real-time tracking data to make better decisions.

4. You constantly discover errors in your data

Have you discovered any 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 detecting these errors can cost your business money.

5. You feel like you have multiple job titles

Does the manual entry process stress you out and make you feel like you’re doing multiple people’s work?

Being able to digitally capture inventory with a barcode scanner would save you a lot of headache and time.

6. Rushing to get ready for tax time

Have you ever heard of the expression “save time, save money”?

A dedicated system can help you save time by automating your process instead of manually entering data into a spreadsheet.

No need to rush at the end of the year to prepare your audit because the data will be up to date and compliant.

How Capital Software Beats With Spreadsheets

Here are a series of revolutionary benefits of implementing immobilizer software that you won’t get from a spreadsheet.

Automated tax compliance updates

Tax laws become more complex every year.

For many organizations with sophisticated schemes, it can be difficult, even overwhelming, to ensure that assets are properly recorded and depreciated.

Doing it manually using spreadsheets puts accuracy and security at risk, which can be costly for an organization of any size.

Today’s software solution includes updates to the most recent legislative changes, so they are always taken into account in every calculation.

Trying to track all the new formulas in a spreadsheet will expose your organization to inaccurate audits, incorrect depreciation calculations, and hefty fines.

Automating this process helps ensure that you are aware of all changes at all times.

Further afield, some software providers include details of each tax law change as part of the update so you can familiarize yourself with them.

Tracking and amortization for fixed asset management

Just as legislation can be complex to follow, important asset data and details can be difficult to manage using a spreadsheet.

Tracking of divestments, transfers, labor, locations, materials, and capital investments, and generally accepted accounting principles (GAAP) are examples of key information you’ll want to have easy access to. and filter on a single platform for a boost on self-built assets.

You can customize the specific data points you want to track with an automated solution, saving you research time and making it easier to analyze with confidence.

Savvy solutions allow you to create custom depreciation methods so you can track hundreds of different asset types comprehensively and in most cases in real time.

Management of physical inventory processes

Once again, 15% to 30% of fixed assets are assets sold but insufficiently monitored.

Juggling data across multiple spreadsheets can make it difficult to spot these types of discrepancies.

Fixed assets software solutions offer tools to reconcile disposals and transfers to ensure your inventory is reflected accurately and without insurance over/underpayment.

Planning and follow-up of fixed assets management projects

As time passes and it’s time to replace assets (or depreciate new ones), you’ll want to start planning the budget and other resources to do so, especially if you have multiple locations.

This essentially allows you to track assets throughout their lifecycle:

  1. The asset is planned from the purchase budget to commissioning.

  2. Depreciation is automated as the asset moves from planning to commissioning throughout its useful life. You can manage the financial aspects at any time during the exercise.

  3. You can manage the physical location of assets throughout the lifecycle if you move or add a new location.

  4. Robust and often highly customizable reporting capabilities to generate information not available through spreadsheets (but imagine how many spreadsheets that would take…).

Workflow integration for efficient fixed asset management

Spreadsheet formulas can break when passed from one employee to another, or an incorrect cell reference can lead to inaccurate values.

With fixed assets, it’s easy for these inaccuracies to lead to bigger problems.

Integration with your organization’s purchasing or accounting software adds another layer of control and simplicity you won’t get using spreadsheets.

Purchasing data is automatically loaded from one trade stream to the next, reducing human error and ensuring accuracy at every touchpoint.

You can even attach an invoice to one or 10 newly purchased computers, for example.

An integrated fixed asset accounting and reporting system eliminates the need to duplicate entries or export data between systems.

This can be particularly useful in the event of a natural disaster, burglary or vandalism.

Having this information readily available and easily traceable can streamline the insurance claim process.

Final Thoughts

Fixed assets may seem complicated at first glance.

After all, they may be subject to a myriad of rules, regulations, and depreciation methods and may be physically located in a wide range of geographic locations, making them difficult to monitor.

And that’s before you factor in cumbersome spreadsheets and information silos.

The intelligence of new products, however, gives managers a better way to manage them, which can ensure cost savings for the business and increased productivity for everyone involved.

With a streamlined process for tracking and depreciating fixed assets, they can simply be an integral part of a well-run organization, enabling its growth rather than hindering its progress.

Spreadsheets, while useful in many ways, can only take your business so far when it comes to asset management.

After a certain point, it’s worth investing in fixed asset tracking software, which can intelligently streamline the above processes and more.

This can give your business better insight into its fixed assets, minimizing total cost of ownership while simplifying operational and financial workflows.

Source link