Are Fixed Asset Tracking and Fixed Asset Management the Same?

In the field of Enterprise Asset Management, it's easy to get tangled in a web of similar terminologies. Two commonly confused concepts are Fixed Asset Tracking and Fixed Asset Management. Are they the same? The short answer: no. While they both relate to Fixed Assets, one is a subset of the other.

Understanding the distinction is crucial, especially if you're considering implementing a Fixed Asset Management Software System in your business. This blog will clarify the differences and explain why both are essential for your business operations.

What is Fixed Asset Tracking?

Fixed Assets represent the most valuable and long-term resources your company owns, such as:

• Buildings: Offices, warehouses, and retail stores.
• Equipment: Machinery, tools, printers, and computers.
• Vehicles: Trucks, vans, and company cars.

These assets are not quickly convertible to cash but hold significant value. Their importance makes it vital to monitor and manage them effectively to avoid risks like theft, loss, or obsolescence.

Fixed Asset Tracking involves using technology like RFID tags, GPS, or barcodes to monitor and manage these assets. With an advanced system like Mojodat, you can record critical data, including:

• Purchase price and date
• Asset location and usage
• Maintenance schedules
• Depreciation details
• Warranties and audit history

This technology allows real-time tracking, efficient audits, and centralized access to all asset information, improving operational efficiency and reducing errors.

What is Fixed Asset Management?

Now that we've clarified Fixed Asset Tracking, let's explore Fixed Asset Management.

Fixed Asset Management encompasses the broader strategy of overseeing, maintaining, and optimizing all Fixed Assets within an organization. Tracking is just one component of this comprehensive process.

The role of a Fixed Asset Manager often includes responsibilities like:

1. System Implementation: Selecting and integrating an appropriate management system that aligns with company needs. Advanced systems like Mojodat support bulk tagging and seamless integration with accounting software.
2. Policy Development: Establishing policies and processes to govern asset usage, audits, and approvals.
3. Real-Time Tracking: Monitoring asset transfers, ensuring proper acknowledgment, and managing custody and return processes.
4. Asset Audits: Regularly conducting audits to identify 'ghost assets' (nonexistent or misplaced items) and determine maintenance or retirement needs.
5. Disposal Management: Overseeing the sale, disposal, or repurposing of outdated or unused assets.

 

The Financial Role of Fixed Asset Management

An efficient Fixed Asset Management system ties directly into financial management by generating journal entries for transactions like:

• Depreciation
• Partial additions or disposals
• Transfers
• Acquisition of new assets
• Full eliminations

By automating these processes, businesses can maintain accurate financial records and streamline reporting.

Ensuring Compliance and Optimizing Inventory

Compliance with industry regulations is another key responsibility of Fixed Asset Management. This includes:

• Managing operational maintenance schedules.
• Preventing theft or loss.
• Ensuring machinery and equipment are safe and functional for employees.

Regular audits and inventory checks help optimize resources, reduce costs, and improve overall efficiency.

Training and Guidelines

For a Fixed Asset Management system to work seamlessly, employees must be properly trained to use it. Clear guidelines should be issued for employees responsible for asset usage, such as machinery operators or drivers of company vehicles. This ensures accurate updates and smooth tracking.

In Conclusion

While Fixed Asset Tracking focuses on monitoring and recording asset details, Fixed Asset Management encompasses a broader strategy for maintaining, optimizing, and ensuring compliance for all assets. Together, they form the backbone of efficient Enterprise Asset Management.

If you're ready to elevate your asset management processes, explore Mojodat, a cutting-edge Fixed Asset Management system trusted to manage your assets worldwide!