10 Best Practices for Fixed Asset Tracking | Itefy

10 Best Practices for Fixed Asset Tracking

Learn 10 best practices for fixed asset tracking to help businesses maintain and optimize their physical assets. Improve asset usage and extend lifespan.

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fixed asset tracking

Fixed asset tracking is important for businesses to manage physical resources such as equipment, vehicles, and machinery. However, 65% of organizations struggle with incomplete, inaccurate, or missing asset information. This leads to costly mistakes and bottlenecks.

Tracking important details like location, condition, and maintenance history helps businesses reduce costs and optimize resources. Tools like asset tags, barcodes, or specialized software ensure real-time monitoring and support proper maintenance.

Let’s find out 10 best practices for fixed asset tracking that can improve asset management and help businesses save money.

What is Fixed Asset Tracking?

Tracking fixed assets is the process of monitoring and managing a business's physical assets. This physical asset management involves recording key details such as the asset's location, usage, condition, and maintenance history. By tracking assets, businesses can save money, boost productivity, and optimize resource management.

fixed-asset-management-software-global-market-report

Fixed asset management software global market report

To track fixed assets smoothly, businesses often use asset tags, barcodes, or specialized software systems that provide real-time records. This strategy not only helps prevent losses but also ensures proper maintenance and better overall management of assets.

10 Best Practices for Fixed Asset Tracking: A Complete Guide

By following best practices for asset management, businesses can save up to 30%. These practices help optimize asset usage and improve overall productivity. Here are some key strategies for fixed asset tracking:

1. Start with a Comprehensive Inventory

The first step in tracking assets is creating a detailed inventory. List each fixed asset's location, condition, and identifying details. This inventory serves as the foundation for all future tracking. 

A complete asset list also makes it easier to identify missing or misplaced items. Knowing exactly what assets you have can avoid duplicate purchases and reduce waste.

A clear inventory also supports long-term planning. It helps with budgeting, scheduling maintenance, and preparing for audits. Overall, a comprehensive inventory simplifies asset management and helps businesses make better decisions about using their resources. 

2. Implement a Reliable Tracking System

A reliable tracking system is crucial for accurate asset management. Investing in reliable software that meets your business’s needs can improve tracking and reduce errors. Look for software with real-time tracking, reporting, and data integration features. These tools make it easier to update records, identify missing assets, and monitor asset usage.

fixed-asset-tracking-system

Fixed asset tracking system

With a quality tracking system, you can also automate many processes. Automation can reduce data entry time by up to 60%, helping you focus on other tasks. Some benefits of a reliable tracking system include:

  • Save employees time by reducing manual data entry time.
  • Reduces human error, leading to more precise records.
  • Allows for real-time reports, which support data-driven decisions.

3. Use Asset Tags and Barcode Labels

Asset tags, such as barcodes or QR codes, are a simple way to track assets. Tagging each asset with a unique code allows employees to quickly scan and update any item's location, status, or condition. This saves time and reduces human error, making asset management more organized. With barcode and QR code tagging:

Asset tags make it easier to track every item in real-time. This improves data accuracy and ensures a clear, organized view of all assets. 

4. Schedule Regular Audits

Scheduling regular audits allows you to verify that fixed asset records are accurate and up to date, which is important for maintaining reliable data. By routinely checking fixed assets, businesses can quickly identify missing or misplaced items and address them before they become larger issues.

Regular asset management audits also promote accountability. When employees know assets will be regularly checked, they’re more likely to handle them responsibly. This care helps extend asset life and supports better asset management over time. Making audits part of your tracking process can strengthen your asset management system. 

5. Define Clear Ownership and Accountability

When a specific person or team is responsible for an asset, they keep it well-maintained and updated in the system. Defined ownership also makes it easier to identify changes, such as when an asset has been moved or requires maintenance. 

Having a designated person accountable for each asset allows quick updates and ensures no item goes without monitoring. Incorporating ownership into asset management strengthens tracking, keeps data accurate, and enhances accountability across the team.

6. Automate the Tracking Process

Automating fixed asset tracking can simplify the entire management process. For instance, using RFID tags to monitor asset movement in healthcare asset management settings can reduce human error by 41%. Automated alerts for maintenance or status changes keep records up-to-date without continuous manual updates.

RFID-in-healthcare-market

RFID tagging in healthcare

This streamlined process not only saves time but also enables teams to focus on other tasks within asset management. By reducing manual effort, automation results in smoother, more reliable tracking and enables better resource allocation where needed most.

7. Set Up Maintenance Schedules

A maintenance schedule helps keep assets in good condition and extends their lifespan. It also offers several benefits:

  • Reduces repair costs
  • Minimizes downtime
  • Boosts productivity

Regular maintenance ensures assets perform better, reduces the need for unexpected repairs, and simplifies the fixed asset management process.

8. Use Real-Time Data for Better Decisions

Real-time data offers valuable insights into asset performance and usage. Tracking it allows you to identify assets that need replacement or upgrades. This information helps improve decisions on asset allocation and budgeting. 

Additionally, real-time data enables businesses to respond quickly to changes and make fixed asset tracking an important part of strategic planning.

9. Improve Security Measures for Fixed Assets

Protecting fixed assets from theft or loss is crucial. Implement basic security practices, such as restricting access to valuable assets and using GPS tracking for protection. These security practices reduce the risk of theft.

Strong security practices play a vital role in fixed asset management. They confirm assets are well-protected and help businesses maintain control and prevent financial losses. 

10. Regularly Update Asset Data

Updating asset information regularly provides accurate records. Track any changes in an asset’s status, condition, or location. This prevents errors and simplifies audits and:

  • Keep data up-to-date to avoid tracking problems.
  • Regular updates improve fixed asset management.

By maintaining up-to-date records, businesses boost their asset-tracking process and reduce the risk of mistakes.

Benefits of Fixed Asset Management Process For Tracking

The management process for fixed asset tracking offers businesses many benefits in managing their physical resources smoothly. By keeping track of asset locations, conditions, and usage, companies can make decisions that lead to better resource optimization. Below are some key advantages of implementing a fixed asset management process:

  • Cost Savings: Asset tracking helps businesses avoid unnecessary purchases, prevent asset loss or theft, and lead to significant cost savings.
  • Longer Asset Lifespan: Regular tracking facilitates timely maintenance, prevents unexpected breakdowns, and extends the lifespan and performance of assets.
  • Improved Financial Accuracy: Maintaining accurate asset records ensures precise data for financial reporting, budgeting, and tracking asset depreciation.
  • Regulatory Compliance: Fixed asset tracking helps companies meet industry regulations by maintaining accurate, accessible records for audits and inspections.

Track Your Fixed Assets with Itefy

Think of fixed asset tracking as the foundation of your organization’s resource management. It provides real-time visibility into your assets’ condition, location, and usage and helps you make smarter decisions and reduce costs.

What if you could not only track your assets but also generate detailed reports quickly? Itefy makes this a reality. With its advanced platform, you can easily monitor and manage your fixed assets while generating accurate reports with just a few clicks. 

Switch to Itefy today and experience a smarter, more accurate approach to managing your assets!

Frequently Asked Questions

  • Fixed asset tagging is the labeling of physical assets with unique identifiers, such as barcodes, QR codes, or RFID tags. These tags are attached to each asset to make tracking and management easier. Each tag contains detailed information, such as the asset's ID, location, and condition.

    By scanning these tags, businesses can quickly update asset details. This process ensures accurate records, reduces errors, and simplifies audits and asset management.
  • Tracking fixed assets involves keeping detailed records of each asset. Here are common methods for asset tracking:

    Asset Tags: Attach unique barcodes or QR codes to each asset. Scanning these tags lets you quickly update the asset’s status or location.

    Asset Management Software: Specialized software helps track assets and automate, update, and generate reports.

    RFID Technology: RFID tags allow for real-time tracking without manual scanning.
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