{"id":10918,"date":"2022-02-28T10:00:00","date_gmt":"2022-02-28T10:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=10918"},"modified":"2024-09-10T16:09:08","modified_gmt":"2024-09-10T15:09:08","slug":"asset-lifecycle-save-money","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/asset-lifecycle-save-money\/","title":{"rendered":"10 ways your asset lifecycle can save you money"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\t10 ways your asset lifecycle can save you money\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tStacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Does your business use a system that makes it easy to anticipate the lifecycle of your fixed assets and identify ways to cut costs though tax breaks? <\/p>\n\n\n\n

Or is it a constant struggle to keep track of your assets?<\/p>\n\n\n\n

Here’s what we cover in this article:<\/p>\n\n\n\n

The problem with spreadsheets<\/a><\/p>\n\n\n\n

How fixed asset management solutions can help<\/a><\/p>\n\n\n\n

10 ways fixed asset management software can reduce risk and save money<\/a><\/p>\n\n\n\n

Final thoughts<\/a><\/p>\n\n\n\n

The problem with spreadsheets<\/strong><\/h2>\n\n\n\n

While spreadsheets and legacy software play an important role in managing your fixed assets, they can eventually cause problems in your business.<\/p>\n\n\n\n

Why? <\/p>\n\n\n\n

Because documents and spreadsheets are often shared around the office and can be edited by anyone. <\/p>\n\n\n\n

This makes it difficult to keep track of changes and you can\u2019t be sure that the version you\u2019re working with is the most current.<\/p>\n\n\n\n

Aside from the name of the last person to edit the document, and the date and time it was edited, there is no way to automatically log changes.<\/p>\n\n\n\n

This means data within spreadsheets can be easily compromised because there\u2019s no way to easily see who changed what.<\/p>\n\n\n\n

This can cause major issues when trying to manage fixed assets. <\/p>\n\n\n\n

Research firm Aberdeen identified manual data input, a lack of security and accountability, broken formulas, and inaccurate data as some of the biggest issues with using spreadsheets to manage fixed assets.<\/p>\n\n\n\n

How fixed asset management solutions can help<\/h2>\n\n\n\n

Asset management software not only maintains the security and stability of your data, it also allows your organisation to handle higher volumes of more complex data.<\/p>\n\n\n\n

With the ability to account for each asset in your business, you can mitigate risk throughout the asset management lifecycle and uncover ways to save money.<\/p>\n\n\n\n

10 ways fixed asset management software can reduce risk and save money <\/h2>\n\n\n\n

Manual processes make it harder to keep track of your assets, but with the right software, you can take advantage of your depreciating fixed assets and save money as they age.<\/p>\n\n\n\n

Fixed asset management software can even help you identify ways to save money before you\u2019ve even acquired a new asset.<\/p>\n\n\n\n

Here are 10 ways that fixed asset management software<\/a> can help you to reduce risk and save money as your assets reach end-of-life.<\/p>\n\n\n\n

1. Accurate asset registration<\/strong><\/h3>\n\n\n\n

Asset management solutions let you accurately record how much you paid for your assets, when you bought them, and from where, allowing you to predict an asset\u2019s end-of-life value. <\/p>\n\n\n\n

These figures are necessary if you need to record them as a tax-deductible depreciation expense.<\/p>\n\n\n\n

2. Remain tax compliant<\/strong><\/h3>\n\n\n\n

Keeping up to date with changes in tax laws will help you to avoid penalties and minimise non-compliance risks. It also helps you to identify and take advantage of tax breaks and benefits. <\/p>\n\n\n\n

Accounting software captures these changes automatically, so you can assess how to use them to your advantage.<\/p>\n\n\n\n

3. Automate depreciation calculations<\/strong><\/h3>\n\n\n\n

Depreciation calculations depend on the asset. <\/p>\n\n\n\n

Tracking the various depreciation methods and manually calculating the depreciation value of each asset is time consuming and can be costly if done incorrectly.<\/p>\n\n\n\n

Most asset management software automatically incorporates tax changes and depreciation calculations.<\/p>\n\n\n\n

This makes it easy to identify depreciating assets and dispose of those that you no longer use, so you can reduce tax and insurance costs.<\/p>\n\n\n\n

4. Accurate tax reporting<\/strong><\/h3>\n\n\n\n

Incorrectly declaring the cost and value of your assets when filing your tax forms wastes time and can result in heavy penalties. <\/p>\n\n\n\n

What\u2019s more, it also has a knock-on effect on period closing and financial statements. <\/p>\n\n\n\n

Asset and inventory management software make it easier to fill in tax forms, reconcile accounts, and avoid the pitfalls that come with incorrectly declared information.<\/p>\n\n\n\n

5. Identify ghost and zombie assets<\/strong><\/h3>\n\n\n\n

There are two types of assets that either don\u2019t exist or can\u2019t be accounted for, but still cost you money:<\/p>\n\n\n\n