Fixed asset management is key to running a successful business. Every business, regardless of its nature, invests initially in some fixed assets such as a piece of machinery or equipment.
Over a period of time, the machinery or the equipment may not generate the value that was originally intended and the value of the fixed asset diminishes. Accountants and bookkeepers carry out depreciation accounting to calculate the diminishing value of fixed assets.
Some reasons for depreciation of fixed assets
- Wear and tear: Physical wear and tear of fixed assets including rusting, rotting or decaying.
- Obsolete assets. New inventions or updated versions may render the asset unusable.
- Lowered rates: Reduction in market price either due to fluctuating exchange rates or competition
- Time: Time lapse renders fixed assets such as buildings less valuable
- Natural disasters: Disasters like floods, earthquake rendering damage to fixed assets
Accountants and bookkeepers need to compute depreciation to determine the net profits and earnings for the accounting period. Depreciation costs need to be matched with the revenue generated. The financial statement needs to reflect the depreciation of fixed assets and without this calculation, the asset value can be overstated. Businesses also need to report to the stakeholders the exact value of assets.
An accurate estimate of fixed assets depreciation can be made when there is a streamlined process of inventory tracking and asset tracking system in place. The accuracy of accounting depends on the reliability of asset tracking and inventory tracking. In huge business operations, the physical inventory tracking or asset tracking can become a daunting task for accountants.
Intelligent asset tracking solutions from GoCodes
GoCodes provides the automated cloud software systems and QR codes to intelligently manage asset tracking for accountants. With an integrated system of asset tracking, all that is required to do is to scan the fixed assets into the software. Accountants have a ready list and record of fixed assets. Checking all the details related to each equipment is easy with just a click of a button. Not only can accountants retrieve information on the date of purchase, maintenance schedules or due dates for replacement, they can also calculate depreciation in quick time.
Manage the entire asset lifecycle
GoCodes cloud software and QR code scanning give accountants and bookkeepers the flexibility to intelligently manage the whole of the fixed asset life cycle. All details including acquisition, movement or transfers and their disposal can be easily tracked. Accountants can compute year ending financial statements, calculate fixed assets depreciation and allocate costs for fixed assets easily using GoCodes’ software.
The automated cloud software system eliminates entries that are redundant which optimizes time and money. The ease of storing images digitally and maintaining records of key assets including warranties, insurance details and purchase orders make asset tracking a faster process.
Using GoCodes cloud software and QR scanning accountants can also benefit in the following ways:
- Track lost, missing or stolen goods.
- Detect duplicate tags
- Make use of smartphones or tablets for convenient asset tracking from any location
- Conduct faster inventory tracking and asset tracking to be up to date with tax and insurance statements.