People who just start a business may not be familiar with the accounting term fixed assets, but in terms of accounting, making financial statements, and even company operating policies, fixed assets are a part of the business that must be involved and needs to be dealt with. Using the fixed asset management system, you can quickly manage the fixed asset items of the enterprise, help the enterprise to prepare operational strategy deployment in advance, and improve the overall operational efficiency.
Every company has a wide variety of assets, which can be classified into fixed assets and current assets from an accounting point of view. Current assets refer to assets (including inventory) that will be sold, realized or consumed within a fiscal year, and also include financial assets such as cash and deposits. Fixed assets refer to assets that are not for investment purposes, that is, not for the purpose of reselling and earning the difference between buying and selling prices, and will be maintained for more than one fiscal year.
Fixed assets can also be subdivided into tangible assets and intangible assets. Intangible fixed assets refer to abstract assets such as copyrights, patents, and goodwill; tangible fixed assets include land and land improvements (objects attached to land and with a limited lifespan), buildings and equipment. Apart from land that can be used indefinitely, the other three will lose value through depreciation.
In the account arrangement and financial statements of each fiscal year, accountants must list the addition, deletion and depreciation of fixed assets, so that managers can check the financial status of the company and plan future business deployment, and inform the purchasing department in advance the necessary items to be purchased. This can enhance the efficiency of collaboration between departments.
Enterprises should always pay attention to the maintenance of machinery and other instruments (such as computers, printers), and keep them in good condition to ensure that they are ready for use. This can maintain the productivity of business operations and prolong their service life, saving the cost of depreciation and replacement for enterprises in the long run and making it one of the fixed costs of the firm.
Finally, there is a need to transfer fixed assets within the enterprise from time to time. Although this itself does not need to involve bookkeeping and accounting records, it needs to re-assign the departments and users. This process requires a systematic method for managing the fixed assets.
The traditional asset management process requires specialized personnel to record the company's fixed assets and make a list. Whenever there is any change in the assets, the list records and files must be changed. The process takes time and effort. If it is done in paper, there will be risk of damage or loss in the documents.
ReportNOW software solution has built-in asset management module and adopts cloud data system to facilitate enterprises to manage assets quickly. For example, by using the ReportNOW app, corporate employees can easily add asset items by simply scanning a QR code, and can instantly access corporate asset files and view detailed information on mobile devices such as mobile phones or tablets. Thanks to the IoT technology of ReportNOW and r-Tag, the accounting department and finance department can use the app to easily track the items on the asset list during daily business operations, making the inventory process easier and greatly saving manpower and material resources . During the transfer of fixed assets, managers can use ReportNOW to check the approval process and records at any time, and can easily integrate asset databases to produce reports containing data and charts for evaluating the current status of the enterprise and deploying future strategies.
To embrace the trend of digital transformation in Hong Kong, simply switch to the ReportNOW Fixed Asset Management System. If you want to know more about the details and application of the asset management system, please consult the professional team of ISL. We will provide you with the most suitable suggestions and solutions.
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