What is an Asset Register?
In its simplest form, an asset register is a detailed list compiled of all your business assets. Assets can be physical/fixed assets, IT assets, digital assets, or specific assets relating to operations such as schools or hotels. It includes details on assets such as location, condition, owner, and value.
Businesses that depend on their assets to make money should create and use an asset register. But, delivering an asset register that guarantees accurate asset data for users is an even greater – and crucial – step. Hence the saying; “if you can count all your assets, you always show a profit”.
Tracking fixed assets in real-time is now common with Asset Management Software and tracking technologies. 81% of small and medium businesses don't know what assets they have or have access to an asset register.
This means that a large majority of these businesses lack a clear understanding of their assets. They also do not have access to a proper asset register. The lack of an asset register has pitfalls for businesses:
- Inaccurate financial records
- A build-up of costly ghost assets
- Lack of understanding of asset priority
- Job delays through lack of spare part visibility
- Limited visibility of asset lifecycle (particularly when it comes to acquisition and disposal)
- High asset maintenance costs & unplanned downtime
Nonetheless, creating a precise asset inventory using asset management instruments can detect and eradicate these deficiencies.
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