Fixed assets are items and other property that a company owns, but they aren’t intended to be sold to customers and are difficult to trade in for cash. Examples of fixed assets include facilities, large structures, equipment, warehouse shelves and other tangible objects that are used to build and store products for consumers. Patents and intellectual property aren’t considered fixed assets because they are intangible.
Without fixed assets, a company wouldn’t have any products to sell or any place to keep them. Why is it important to keep track of fixed assets? Just like regular products, fixed assets need to be tracked in order to make the best use of them. Despite their name, these assets aren’t permanent. They are subject to such things as decay, obsolescence and other factors that require them to be replaced from time to time. So it’s extremely important to know how old equipment is, and how often it is used.
This is where fixed asset tracking software comes in handy. As its name suggests, fixed asset tracking software allows you to track your fixed assets wherever they might be and whatever condition they might be in. Since fixed assets aren’t likely to switch locations very often, it’s more important that you track their condition and how long they are expected to continue to be operational.
As fixed assets come to the end of their life cycle, your company should make a strategic decision about replacing them. You can either purchase the same model as before or, if technology has improved and become more affordable, you can invest in something more efficient. When you use fixed asset tracking software, you have access to detailed information about both your current and fixed assets, which helps you know when to plan ahead for these major decisions.
Learn more about how fixed asset tracking software can help your company by signing up for a free trial right now.