A good analogy of proper asset management is like walking in a park with a pristine lake that lets one see everything beneath the water line, from the rocks and fishes swimming around. Businesses with effective asset management can see everything going on within their organisation, with little to no surprises that could disrupt their daily operations.
Unfortunately, only a few businesses enjoy this level of clarity, while many others still need to deal with problems like audit failures which can become quite costly and time consuming. Thankfully asset management solutions like RFID asset tracking systems can help all organisations become audit-proof.
What Is Asset Management and the Importance of Maintaining Asset Records
Asset management is a system comprised of hardware and software that work in tandem to manage and track business assets for their entire lifecycle, including fixed and intangible assets like inventory, machinery, contracts and software licenses. These systems also now come with cloud-based applications that automate the tracking process involved in storing asset records, generating reports, and triggering alerts whenever certain items are due for maintenance, calibration or replacement.
Asset tags are typically used with asset management solutions to track and identify assets physically. This is where RFID comes in with its tag-reader system. By leveraging a good asset management solution, businesses can enjoy better visibility in their asset records and improve operational efficiency, including inventory management.
An accurate asset record is indispensable for many reasons, including compliance regulations, insurance, asset valuation, and taxation. RFID asset management enables benefits such as optimised asset utilisation, improved asset performance, and reduced asset-related costs, all of which save time and money by streamlining the asset tracking process. RFID asset management can also help with the audit-proofing of asset records as it provides a central location for asset data that makes them easier to find and manage. Furthermore, it can assist in tracking asset depreciation and provide accurate asset records for taxation purposes.
The Role of RFID Asset Management In Successful Audits
Audits are a necessary yet complex and time-consuming business process. Many businesses audit their assets regularly to ensure proper records and management. However, manually doing this without the proper management tools takes too long and is prone to errors. RFID asset management can streamline the audit process with accurate and latest data on all business assets, which can be used to track compliance, identify risk areas, evaluate internal controls and their effectiveness.
In addition, these solutions can automate specific tasks in the auditing process, like data collection and report generation, reducing the overall time and cost involved in its completion. Lastly, asset management can reveal critical insights into the company’s operations to improve effectiveness and efficiency.
Notable Features of RFID Asset Management That Enable Audit-Proof Businesses
A feature-rich RFID asset management system will provide businesses with many advantages that improve asset utilisation, control of costs and ensure compliance are within regulations and industry standards. Any good asset management solution will have several key features that make asset audits quicker and easier, such as:
1. A centralised database is critical for storing all asset information in a single source, simplifying tracking and auditing asset records along with asset locations and ownership. Having this information with quick retrieval, facilitates answering any questions raised by auditors.
2. A simple asset utilisation tracking feature provides data evidence that demonstrates the effective use of business assets with accountability.
3. A robust reporting system that generates custom reports on business assets helps quickly identify discrepancies or areas for improvement.
4. Easy integration with other systems is necessary to connect with asset data and business systems like accounting seamlessly.
5. Depending on the business, scalability features may also be necessary so that the asset management solution can grow with the organisation.
An asset management system is vital for any organisation that needs to stay on top of its business assets and to ensure a quick and successful audit. Asset records are the foundation of this success, as any inaccuracies can lead to the entire audit process being compromised. This is why investing in an asset management solution with an RFID system, which has a long-standing record of being the best choice for tracking assets across industries, is an important decision for maintaining accurate asset records efficiently, effectively, and with minimum effort.