The usage of IT and computers in the workplace has rocketed in the last decade. There isn’t one business process today, be it administration, manufacturing or customer service, that doesn’t fundamentally rely on computers to function efficiently. So much so that efficient use of IT has given many a company the competitive edge over its rivals.
Behind this dependence on computers lies a heavy reliance on the IT hardware and systems supporting this. By this I mean computers, peripherals, screens, software and specialised electronic equipment. In the US alone this amount goes into trillions of dollars.
But IT assets are notoriously tricky to keep track of and manage, particularly in large, sprawling organisations. If you lack the proper control and strategic overview on when and how to replace and renew outdated equipment it often has rather chaotic ramifications. Information on exactly what IT equipment and software is being used is unavailable. There is general confusion on what software is being used by who, and whether it has a license. The guys at the IT support line can’t deal with many of their queries efficiently due to lack of info on the specs of the caller’s machine. Upgrading equoment or moving to different sofware packages can descend into a slow, inefficient chaos.Remind you of your workplace? Well it’s surprisingly common in today’s organizations. Dealing with these problems, moreover, can have a hefty price tag. Especially when you factor in the accounting side of things, where knowing exactly what IT assets you have and their depreciation value can mean significant tax savings.
The fact is you need to control IT assets or the costs associated with them can spiral out of control. The key to resolving this is fixed asset management. Fixed asset management for IT hardware and software basically falls into two distinct categories
Physical Assets. This basically means keeping track of all the IT Assets that exist in your organization. That includes what you have, where it is, and how it is being used. A robust system of asset tracking provides you with invaluable information on which you can act and introduce greater levels of efficiency.
Management of Financial Assets. This is where a business can plug some serious leaks in costs.After recording the equipment being used it is then possible to make a calculation of expected depreciation in value. This information is music to your accounting deparment’s ears, as cutting costs on fixed assets can sometimes be the difference between profit and loss in a financial year.
A lot of businesses are aware of these issues relating to their IT equipment. They just do not have a clear solution of how best to resolve them. The most common way of recording assets has been using a basic spreadsheet - yet these become a nightmare to keep track of and update as they grow bigger. However there are now highly sophisticated asset management software solutions on the market that are designed to tackle all aspects of asset tracking, accounting and management. Maybe the time has come for your company to lay down a little investment in this regard.
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