As your business grows, being able to track and protect your company assets becomes more and more important. Whether it is depreciation, warranty, or insurance, the better that you manage your assets, the lower the risk you will have when it comes to loss.
Here are some solid ways to reduce risk to your business assets and protect your company property:
Get a Good Asset Tracking System
Although asset tracking may be important, it isn’t always the case that it is broken out as a sophisticated feature in many accounting systems. In the past, therefore, it was necessary to blend manual record keeping with whatever capabilities that your accounting software possessed. Large companies, of course, were able to take advantage of ERP and asset management systems that did allow them to protect their property well.
Today, asset management software is available for companies of all sizes. One of the most common approaches for firms that would like sophisticated asset coverage is to use one of the open source ERPs that are available online. Some of them have asset management modules that are integrated with accounting so that your staff can track your assets the way that you need to in order to mitigate risk. Of course, there are accounting software firms that have also now realized that asset tracking is a very important feature. So it is possible to get customizable asset tracking as a feature or an add-on to some of the top vendor’s products. The key to finding the right software for your asset protection needs is to develop your requirements well before you start going out and looking for software packages to use in-house.
Build an Internal Process that Works
Whether you use a manual system or one that is online, your asset tracking system needs to go beyond just listing assets from a physical standpoint. It is helpful to calculate and keep current valuation based on its level of depreciation in front of managers so that they can make maintenance and replacement decisions that save your company money. It is also a good idea to keep summary maintenance reports in front of management so that they can see which assets may be underperforming from a production standpoint.
Your internal process should therefore reflect different asset classes and ensure that each asset class has a consistent set of data surrounding it collected, maintained, and made available to those that need it to make decisions.
Don’t Forget Insurance Considerations
If you have assets that are financed or covered by insurance that treats them as a specific part of your company, you may end up with a situation where you need to follow certain rules in order to keep the insurance on them valid. Because you are not a neutral third-party, it may make sense to use a cost-effective credentialing service that stores, tracks, and analyzes your contracts on your behalf. Beyond making it easy to access data on your assets, services like BCS insurance are able to give impartial advice regarding interpretation of requirements that need to be met in order for the contract to remain valid. As the average loss for the assets covered can be quite large, it makes sense for many firms to mitigate property risk by using a credentialing service.
When it comes to reducing risk to business assets, the most common problems can be cleared up by ensuring that you have taken a holistic look at asset management before designing your property protection system. Companies that develop relevant internal processes and track their assets using customized internal software and external vendors where appropriate will come out ahead- saving time and money and mitigating risk.