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Table of Contents

• What is Fixed Asset Management Software?
• The benefits of Fixed Asset Management Software
• Typical features of Fixed Asset Management Software
• The cost of Fixed Asset Management Software
• Considerations when buying Fixed Asset Management Software
• Relevant Fixed Asset Management Software trends

What is Fixed Asset Management Software?

Fixed Asset Management Software records and tracks an asset throughout its lifecycle, from procurement to disposal. The software identifies the optimal asset management strategy and calculates depreciation on assets such as land, buildings, vehicles, and heavy machinery.

This type of software helps businesses to automate record-keeping and streamline reporting and is also a good fit for companies that need to be valued for tax or acquisition purposes.

The benefits of Fixed Asset Management Software

• Manage assets electronically: The system enables managers to tag assets by using barcodes or radio-frequency identification (RFID) devices. With the help of a barcode reader, the software can scan information and update the data in a centralized database.
• Automate asset depreciation calculation: The solution can automatically calculate the depreciated value of an asset and monitor fixed assets that are nearing the end of their useful life. It can also create depreciation schedules and provide an accurate picture of the utilization of fixed assets.
• Simplify audit and reporting processes: It provides the tools to manage complex asset tracking spreadsheets that help in audit preparation. It addresses issues like working with an unprepared client by generating reports that meet auditor needs.

Typical features of Fixed Asset Management Software

• Inventory tracking: This feature provides the ability to monitor the movement and quantities of fixed assets and tracks them using RFID or barcodes.
• Asset lifecycle management: The software manages assets throughout their lifecycle to optimize profit.
• Audit trail: It tracks the detailed transactions related to fixed assets in financial accounting.
• Depreciation management: This allows for tracking and managing the decline in the value of assets and plan for improvements.
• Maintenance scheduling: The system will issue reminders when maintenance is due that aims to reduce downtime and increase the asset’s lifespan.

The cost of Fixed Asset Management Software

Most products in the market are priced on a “per user, per month” basis and can be divided into three pricing tiers based on their starting price.

Price ranges*:

• $6 - $18
• $18- $52
• $52+

*The pricing included is for the entry-level/lowest-priced offering that was found on vendor websites on July 09, 2019. These ranges correspond to 25th, 75th, and 100th percentile of the pricing information gathered from the vendor websites of sample products.

The above list summarizes pricing for the base plans of most products. An enterprise or premium product, which is priced higher, may include some additional features such as enterprise reporting, multi-site reporting, and a central dispatch portal.

Considerations when buying Fixed Asset Management Software

• Ability to manage both company-owned and leased assets: It’s a good idea to check and see if the solution manages both the leasing and purchasing of certain kinds of assets. There are fixed assets that require huge capital investment and you may plan to acquire them on lease. A lack of leased asset support may force you to replace the software at a later point in time.
• Tax compliance: The solution should be regularly updated on the recent tax depreciation rules and tax reporting formats to avoid any penalties. See if the solution supports the federal tax, state tax, alternative minimum tax (AMT), and adjusted current earnings (ACE) depreciation rules. It’s also worth checking for integration with accounting software as it helps with in-depth tax calculation.

Relevant Fixed Asset Management Software trends

• Use of predictive analytics to generate insights from data: With predictive analytics, companies can better monitor asset inventory, identify maintenance issues, and forecast the replacement of parts. It also helps to bring procurement, operations, and the finance department onto the same platform. The procurement team gets the visibility on which asset they need to purchase, the operations team knows when to replace an asset, and the finance team can adjust the asset’s earning revenue as well as calculate depreciation accordingly.
• Blockchain technology to improve data security: Blockchain technology splits asset information into small blocks and links them together by using chains. This helps to keep the data centralized in digital form without giving anyone the central authority. Different departments can access asset records to gain insights about past utilization patterns and constantly monitor it throughout its lifecycle. The possibility of data tampering is decreased as data is distributed across multiple nodes, and any change in a single block will lead to simultaneous changes in various other blocks.