The realm of top-notch Fixed Asset Accounting Software encompasses an array of exceptional options, including Zoho, TallyPrime, QuickBooks, Xero, FreshBooks, and QuickBooks Online. These sophisticated accounting systems adeptly handle the recording and processing of crucial business account transactions, ensuring seamless financial management for enterprises.
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MProfit is a cloud-based portfolio management software that helps investors, wealth managers, family offices, brokers, and chartered accountants to track and manage their investments.
Fixed asset software is one that helps in automating tracking assets in the different stages of the asset lifecycle, referring from acquisition to disposal.
These softwares are tangible/intangible non-current assets procured to grow a company’s overall productivity. Many companies use this software to manage their fixed asset performance.
This software is available in both standardised and tailor-made formats.to help a company keep a track of their fixed assets application in date, outward date (in case of assets sent for repairs), place, asset categorization, applicable tax depreciation as per the laws of the land, warranty period, repairs & maintenance schedule, etc.
This software effectively tracks your organisation’s financial information related to your capital assets. These below five stages make up the entire fixed asset lifecycle:
a. Acquisition: Every firm has its own asset acquisition tactics. While some businesses may develop their assets internally by employing their staff., others do it externally. In case of an asset developed internally, the company must decide the portion of the employee’s salary that needs to be included in the asset calculation. However, the entire cost is assigned to the asset, once it is fetched externally.
The asset is added to the real property inventory and tracked throughout its life cycle after installation, irrespective of whether it developed or acquired internally.
b. Depreciation: With time the value of every asset starts to decline, and that is depreciation. There, you can receive tax benefits by calculating with fixed asset depreciation software free. Thus decreasing your net profit.
It is mandated for every organisation to perform the accounting transactions known as fixed asset depreciation. Many intangible assets like softwares, hardwares, furniture, and corporate vehicles can be depreciated. To run a business successfully you will need both tangible and intangible assets. But you also need to understand the worth of your fixed assets solution and their depreciation value.
c. Revaluation: Restating asset cost in terms of their current value is called Revaluation.Comparability is the fundamental tenet of revaluation. The question is whether you can meaningfully compare financial statements over time, considering things like the rate of inflation and the current value of assets.
The cost model only permits downward modifications to account for impairment losses. In contrast, the revaluation model permits both upwards and downward adjustments to represent both rises (appreciation) and reductions (depreciation) in the value of an asset.
d. Impairment: The difference between the carrying value of an asset to its recoverable value is an impairment loss. The higher an asset’s fair value, the fewer costs of disposal, and its value in use is the recoverable amount for that asset or cash-generating unit.
Impairment is the long-term decline in a corporate asset’s value. It could be an intangible asset or fixed assets solutions.
The overall profit, cash flow, or other benefits the asset can produce are periodically compared to its current book value when an asset is tested for impairment.
e. Disposal: A firm will never benefit from an asset, no matter how carefully you manage the operation and maintenance of the asset. In most of the cases, ageing and diminished performance are the major reasons, while technological changes may also result in the disposal of assets. There are numerous choices for asset disposal, including:
i. Give it to a charity.
ii. Sell it straight away or for scrap.
iii. Replace it with a more recent model of the same piece of machinery.
It is very crucial to evaluate an asset’s worth accurately to get tax benefits. You should also consider depreciation into account.
If as a business you own fixed assets, then you must ensure that these assets are in good working order. However, if you are handling fixed assets without a solid framework, you can face severe repercussions. If not properly maintained or managed, these assets can disappear or get damaged.
The best fixed asset software prevents unforeseen asset damage or loss. Along with this, it also helps in observing and maintaining machinery, computers, vehicles and other physical assets.
To assist in comprehending the functions of this software and making an informed decision regarding the system, here are some fixed asset management system capabilities or features:
a. Depreciation Methods: With time the value of every asset starts to decline, and that is depreciation. Depreciation affects fixed assets like real estate, vehicles, or machinery, computers, furniture etc. For accounting purposes, fixed and intangible assets like trademarks or branding are always included in the balance sheet, however, only fixed assets are eligible for tax benefits. There are four depreciation methods:
i. Straight line method,
ii. Units of products depreciation method,
iii. Declining balance depreciation method,
iv. Sum of the years’ digit method
b. Standard Reports: Standard reports like inventory and audit reports are very important for every organisation. With having proper knowledge about inventory levels, an organisation can determine the number of stock consumed and when to order next. Furthermore, data analytics can predict which stocks will be more popular and during which period, thus letting you properly plan your order purchase.
Confirmation of the physical presence of assets depends greatly on auditing.
Assets are often leased, and the location is occasionally the subject of discussion. Auditing answers such questions. Once the financial statements and related reports are reviewed, the audit report considers the findings and the auditor’s observations.
Periodically, these audit reports are produced to assist stakeholders and management in evaluating the reliability of asset management and the company’s financial performance. These reports successfully give a company insights by outlining inadequate, inefficient, or underutilized assets.
Fixed asset software also takes care of reports like review workflow, an asset’s detailed maintenance information and employee productivity.
c. Purchase Order Management: Each and every purchase order can be managed and tracked with a purchase order management system. Any upgrade in a purchase order, notifies the management about it, thus providing better financial transparency for the company. With a proper purchase order system there is a risk of human error, which slows down the purchasing order processing. However, you don’t have to be concerned about purchase orders if you have fixed asset software.
d. Management of Asset Disposal: Adequate maintenance and the effective deployment of systems, people, and procedures increases the lifecycle of an asset.
The price at which an item is sold when it is no longer useful is known as the asset disposal value in accounting. For example, when a newer, updated version is installed when a piece of factory equipment ends its useful life. Numerous factors should be considered before asset disposal:
i. The working condition of the asset
ii. The industry standards for the asset
iii. The life of the asset
iv. The new updated version of the asset
e. Tracking & Monitoring: An asset management software helps in managing and maintaining valuable assets without discrepancies by keeping track of all the important fiscal information and also monitors various workflows and data exchange pathways, thus eliminating the risk of data loss or asset misplacement.
f. Fiscal Prudence: Manual inefficiencies and inaccuracies are always lowered or reduced by the automated process, thus increasing productivity and ensuring financial competitiveness. The company can strengthen its organisational proficiency by cutting down on unnecessary costs.
g. Data Transparency: Data transparency is a must-having feature in fixed asset software. Any asset related data must be secure and confidential.All check-ins, check-out and maintenance operations can be streamlined by the software, along with transparently handling the return due dates of assets and more.
h. Unique Codes & Accuracy: These softwares can auto-generate unique asset codes easily. As each asset has a specific reason, specific purpose, the codes generally scan all the information. Users can also update smartphone details using barcodes and QR codes.
i. Compliance: A fixed asset software satisfies the need of various asset accounting, tax compliances and insurance coverage requirements by using tax codes, planning, tracking, and intuitive data forms.
j. Larger Scope: Any fixed assets in a company requires proper management as they have large scale business consequences. However, the right software can reduce risks through proper accounting. It can track asset locations,process work orders, and generate audit trails.
Many small, medium and large-scale companies are benefited by fixed asset management software. They generally use automated solutions to manage and maintain key assets. These customers also receive various intangible and tangible advantages along the way, like:
a. Data Storage: Good quality fixed asset softwares can assemble, organise and store all asset related data. Users can anyday find the storage mechanism of the software reliable, safe and productive.
b. Easy Retrieval: As the data stored in the software is stored without any plan, an authorised user can efficiently access all the relevant information from various sources in the system. Data can be retrieved from the online or on-premises servers without any glitch.
c. Auditing & Reports: Auditing becomes more convenient with digital documents, and databases, and with reliable processes, assets can be audited faster. With this software you can fetch reports without any arrows or confusions.
d. Scheduling Efficiency: Regular tracking of asset ownership, transactions and requirements help managers to access accurate data in real time. With this the managers can make better decisions and optimally assign assets, ultimately reducing costs and lowering the risks and errors.
e. Centralised Control: With a centralised and easy to access database, managers have complete control over all assets and associated data.WIth intellectual decisions, the manager can establish a functional chain of command, ultimately lowering operational inefficiencies to increase work productivity.
f. Archival Advantage: These softwares are meant for management and maintenance. They collect, store and archive all sets of data including the tracking of movements, usage, and updates of specific assets. These data are important as they help in maintaining tight schedules and lower long term expenses.
g. Compliances & Standards: A good reliable software can do High standards of asset management. Along with regulations it also ensures tax compliance. With this, only the up-to-date and legal accounting processes reach professionals, resulting in high quality services by the company without resorting to irregularities.
h. Recycling Benefits: There is always a fear of loss, or damage of a company’s fixed assets. However, a fixed asset software eliminates confusion by properly marking all the assets. It also helps in restoring, recycling or discarding assets for practical reasons.
Many fixed asset management softwares for various genres and sizes of businesses are available in the market today. The valuation of this software market has reached nearly $6.2 billion by 2023. The top 5 fixed asset management software by market share are:
a. Sage Fixed Asset Software: Sage offers end-to-end fixed asset management solutions, enabling companies to have complete control over their assets. Not just this, it also enables you to manage the lifecycle of your fixed assets from the day they are first acquired.
b. UpKeep: Accessing UpKeep’s CMMS is easy and simple as it can be accessed from anywhere, anytime. Creating work orders, receiving notifications and alerts on the go has become more simple with UpKeep’s smartphone app.
c. IBM Maximo: An integrated cloud-based platform, Maximo, offers asset management, monitoring, predictive maintenance, and reliability. Along with this, the Maximo application suite leverages analytics, IoT & AI to extend asset life cycles, lower operating costs and improve performance.
d. Asset Cloud: This cloud based software, helps small to large companies manage corporate assets effectively. AssetCloud’s IT asset management software provides users with precise insight of financial, contractual and inventory elements for them to make critical business decisions.
e. Asset Panda: This robust cloud and mobile asset tracking software is able to track, manage and support assets for their whole life cycle. This tailored software is safe and can be installed on portable devices like smartphones or tablets.
These cloud based ERP systems are the best in the market, with all basic features, key control and vendor management. Able to handle large fixed asset data in multiple locations and time zones, this software supports centralised inspection, budget tracking, incident reporting and contract management. Eliminating tedious work and high maintenance costs become simple with this software. This also helps you in ensuring asset maintenance and insurance.
While some of these softwares include fleet and fuel management, others are specialised for workplace asset management and focuses primarily on facility and real estate management.
Some of the best fixed asset accounting software vendors for enterprises includes:
a. AssetExpert:
b. AssetWorks
c. 360Facility
Asset Management Softwares for Medium-sized organisations facilitate automated asset tracking, audit trails, asset lifecycle management and depreciation. Ideal are those with customization, analysis and maintenance features. Friendly interfaces with scalability options are of demand.
Below are few best fixed asset accounting software vendors for medium-sized businesses:
a. Space Runner: A web based platform, space runner is a planning and management tool that envisions equipment, assets and other data on any virtual image, map, or floor plan.
b. Cheqroom: This software helps businesses in monitoring, evaluating and enhancing their equipment management. With the use of unique QR code you will never lose track of and identify your equipment to obtain information.
c. TYA Suite: This cloud based ERP software can streamline workflows, star campaigns and manage teams from one page. It also allows you to streamline your procurement lifecycle, from processing invoices and payments to optimizing purchase requests based on available stock, safety stocks or lead time.
Small companies generally do not require elaborate reporting features or high end cloud services, rather they require softwares with basic accounting tools. Some fixed inventory management software vendors for small businesses are:
a. EZOfficeInventory: This software makes management of assets and inventory supplies easy and simple. WIth this you can keep track of the entire lifespan of the asset, manage vendors, make purchase orders and more.
b. BNA Fixed Asset: Managing assets life cycle from development or acquisition to retirement becomes easy with BNA. WIth this software management becomes 7streamlines, processes are automated, and much more.
c. RAM Asset Management: RAM is a great solution for asset management. Businesses can optimise operations, increase efficiency and save property management expenses by using the many features of RAM like overseeing, monitoring and recording auditing, risk management and accurate asset reporting.
Apart from management, asset management softwares can take care of maintenance and evaluation of assets of an organisation. By optimising labour costs and inventory processes it can improve productivity. Handling asset depreciation, repairs, tracking, scheduling, operations etc has become simpler with this software. Current market trends in this software are:
a. Automation has become a part and parcel of life. Industries today are adopting automation and IoT smart devices to increase productivity.
b. Assets in Energy, Healthcare, Construction and Manufacturing are set to grow.
c. Cloud based solutions and software have a growing demand among consumers.
d. Software developers around the globe are collaborating to design innovative solutions.
e. Many business enterprises are partnering with smart service providers.
f. There is a higher demand for asset management software among the transport, logistics and sales industry.
Making changes to your plan by understanding fixed asset accounting can help in maximising your earnings.
a. Establish An Approach For Capitalisation: You must ensure that your accounting records are consistent and are good to assist you and your team in identifying any accounting issues when purchasing an item. Your team, your decision-makers appropriately establish a fixed amount for capitalization.
b. Label Your Assets: It is crucial to monitor and tag your assets as many factors can be responsible for your assets value over time. Tagging aids in a fixed asset tracking system can track their life cycles, theft prevention, misplacement elimination, and financial data checking.
c. Reassessing Equipment Life: Predicting the timeframe of your fixed asset can let you use them for their intended purpose thus benefiting you immensely in the long term.
d. Automate Insights With the Right Fixed Asset Management Software: It helps in automating manual tasks to assist in tracking your data using the software. With the software, you can decide who can have what access.
The best fixed asset management software will not just simplify your company’s accounting responsibilities, but also boost workplace efficiency and spare you from charges related to ghost and duplicate assets.
Managing fixed assets can be time taking. It requires going through large amounts of dispersed data, which takes time from more profitable corporate endeavours.
Managing your valued assets and extending their life enables you to be more productive. So, it makes fixed asset lifecycle management a crucial task for any firm. With asset management software, assets can be correctly maintained, and can receive timely upgrades and repairs.
Fixed Asset Software is a specialized tool that efficiently helps businesses track, manage, and depreciate their tangible assets, such as equipment, vehicles, and property.
Businesses use Fixed Asset Software to maintain accurate records, streamline audits, optimize asset utilization, and comply with financial reporting requirements.
Fixed Asset Software typically employs various methods like straight-line, declining balance, or custom depreciation schedules to calculate and record asset depreciation over time accurately.
Many Fixed Asset Software solutions offer integration capabilities, allowing seamless connections with accounting, ERP, and inventory management systems for data consistency.
Yes, Fixed Asset Software comes in various scales and can be tailored to fit the needs and budgets of small businesses, helping them efficiently manage their assets.
