{"id":69377,"date":"2021-10-30T17:26:22","date_gmt":"2021-10-30T15:26:22","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=69377"},"modified":"2026-02-03T16:19:00","modified_gmt":"2026-02-03T14:19:00","slug":"fixed-asset-management","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/fixed-asset-management\/","title":{"rendered":"Five reasons why fixed asset management isn\u2019t built for spreadsheets"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/strategy-legal-operations\/\" class=\"entry-header__link\">Strategy, Legal &amp; Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tFive reasons why fixed asset management isn\u2019t built for spreadsheets\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\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\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2021-10-30T17:26:22+02:00\">October 30, 2021<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Five reasons why fixed asset management isn\u2019t built for spreadsheets\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/fixed-asset-management\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/wayneaustin1\/\">\n\t\t\t\t<img decoding=\"async\" alt=\"\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2018\/08\/Wayne-Austin-Photo2.jpg\" class=\"entry-author__image\" height=\"40\" width=\"40\" fetchpriority=\"high\" \/>\t\t\t\t<span class=\"entry-author__name\">Wayne Austin<\/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<p>How effective is your spreadsheet strategy for fixed asset management?<\/p>\n\n\n\n<p>It may appear to get the job done, but the world has shifted to digitizing all business work streams for improved efficiency and cost savings. Managing fixed assets is no different.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-za\/blog\/better-fixed-asset-depreciation-process\/\">Fixed asset depreciatio<\/a>n, the process of tracking the life cycles of fixed assets and reporting their value for insurance and tax purposes, is one of the most important financial processes in any business or organization. Fact is, a good fixed assets tracking system is multi-dimensional and more than a spreadsheet can accommodate. And, the bigger the organization, the bigger the system requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Asset misappropriation schemes are the most common type of corporate fraud comprising 87% of the cases <a class=\"SWhtmlLink\" href=\"https:\/\/www.acfe.com\/report-to-the-nations\/2018\/\">reported<\/a><\/li>\n\n\n\n<li>15-30% of fixed assets are ghost assets, meaning they don\u2019t exist. Many organizations are unaware of over payments and opportunities to cut costs<\/li>\n<\/ul>\n\n\n\n<p>Here are four barrier-breaking benefits of implementing fixed asset software that you won\u2019t get from a spreadsheet.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-automated-tax-compliance-updates\">Automated tax compliance updates<\/h2>\n\n\n\n<p>Tax laws are growing more complex each year. For many organizations with sophisticated schemes, it can be difficult \u2013 even overwhelming \u2013 to ensure assets are recorded and depreciated correctly. Doing so manually using spreadsheets puts accuracy and security at risk, which can be costly for any size organization.<\/p>\n\n\n\n<p>Research shows that 35% of fixed asset management software users specifically site compliance with new and\/or changing regulatory requirements as a key driver in minimizing risks. Today\u2019s software solution includes updates (typically twice each year) of the most recent legislative changes so they are always accounted for in every calculation. Trying to keep up with all of the new formulas within a spreadsheet will leave your organization vulnerable to auditing, inaccurate depreciation calculation and hefty penalty fines. Automating this takes helps you ensure you\u2019re on top of all changes at all times. A step further, some software providers include details about each tax law change as part of the update so you can become familiar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tracking-and-depreciating-for-fixed-asset-management\">Tracking and depreciating for fixed asset management<\/h2>\n\n\n\n<p>Just as legislation can be intricate to follow, important data and details about assets can be difficult to manage using a spreadsheet. Tracking disposals, transfers, labor, locations, materials, and capital investments, and generally accepted accounting principles (GAAP) are examples of key information you\u2019ll want to be able to easily access and filter on one platform for a pulse on self-constructed assets. You can customize the specific data points you\u2019d like to track with an automated solution, saving you time searching and facilitating confident analysis. Savvy solutions allow you to create custom depreciation methods so you can track hundreds of different types of assets comprehensively and in real-time in most cases.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-managing-physical-inventory-processes\">Managing physical inventory processes<\/h2>\n\n\n\n<p>Again, 15-30% of fixed assets are assets that were disposed of but inadequately tracked. Juggling data across multiple spreadsheets can make it difficult to spot these kinds of discrepancies. Software solutions for fixed assets offer tools to reconcile disposals and transfers to ensure your inventory is reflected accurately and no over\/underpayment of insurance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-planning-and-tracking-projects-for-fixed-asset-management\">Planning and tracking projects for fixed asset management<\/h2>\n\n\n\n<p>As time progresses and it\u2019s time to replace assets (or depreciate new ones), you\u2019ll want to start planning for budget and other resources to do so \u2013 especially if you have multiple locations. This essentially allows you to track assets through the entire lifecycle.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The asset is planned from the budget for purchase to placement into service<\/li>\n\n\n\n<li>Depreciation is automated as the asset moves from the planning phase to in service throughout its useful life. You can manage the financial aspects at any point in the financial year.<\/li>\n\n\n\n<li>You can manage the physical location of assets through the lifecycle should you relocate or add a new location.<\/li>\n\n\n\n<li>Robust, often heavily customizable reporting capabilities to generate insights not available via spreadsheets (but imagine how many spreadsheets it would take!).<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-workflow-integration-for-efficient-fixed-asset-management\">Workflow integration for efficient fixed asset management<\/h2>\n\n\n\n<p>Spreadsheet formulas can break when passed from one employee to another, or improper cell reference can lead to inaccurate values. With fixed assets, it\u2019s easy for these inaccuracies to lead to bigger problems. Integration with your organization\u2019s purchasing or accounting software adds another layer of control and simplicity that you won\u2019t get from using spreadsheets. Purchasing data is automatically loaded from one business stream to the other, reducing human error and ensuring accuracy at each touch point. You can even attach an invoice to one or 10 newly purchased computers, for example. An integrated accounting and fixed asset reporting system eliminates the need to duplicate entries or export data between systems.<\/p>\n\n\n\n<p>This can be particularly useful in the case of a natural disaster, burglary, or vandalization. Having this information readily available and easily trackable can streamline the insurance claim process.<\/p>\n\n\n\n<p>Fixed assets may appear complicated at first glance. After all, they can be subject to a multitude of rules, regulations, and depreciation methods and can be physically located in a wide range of geographical locations making it difficult to keep an eye on. And that\u2019s before you factor in cumbersome spreadsheets and information silos. New product intelligence affords those responsible a better way to manage them, though, that can ensure cost savings for the company and enhanced productivity for everyone involved. With a streamlined process for tracking and depreciating fixed assets, they can simply be part and parcel of a well-run organization, enabling its growth rather than hindering its progress.<\/p>\n\n\n\n<p>Spreadsheets, while useful in many ways, can only take your company so far when it comes to managing fixed assets. After a certain point, it\u2019s worth investing in fixed asset tracking software, which can intelligently streamline the above processes and much more. Doing so can give your company more insight into its fixed assets, minimizing their TCO while simplifying operational and financial workflows.<\/p>\n\n\n\n<p>Has your organization migrated to a digital fixed management system? If yes, how would you compare the difference? Do you plan to within the next 12 months? Tell us why or why not in the comments.<\/p>\n\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>How effective is your spreadsheet strategy for fixed asset management? It may appear to get the job done, but going digital could save you time and money.<\/p>\n","protected":false},"author":652,"featured_media":68744,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[27],"tags":[],"business_type":[3],"lilypad":[],"context":[],"industry":[346],"persona":[8,13],"imagine_tag":[56,361,78,79],"coauthors":[448],"class_list":["post-69377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy-legal-operations","business_type-medium-business","industry-manufacturing"],"sage_meta":{"region":"en-za","author_name":"Wayne Austin","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2020\/08\/Fin24-Lifestyle-Image-2.jpg","imagine_tags":{"56":"ERP","361":"Fixed Assets","78":"Supply Chain Management","79":"Supply management"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South Africa","distributor_original_site_url":"https:\/\/www.sage.com\/en-za\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/users\/652"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/comments?post=69377"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/posts\/69377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media\/68744"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/media?parent=69377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/categories?post=69377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/tags?post=69377"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/business_type?post=69377"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/lilypad?post=69377"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/context?post=69377"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/industry?post=69377"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/persona?post=69377"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/imagine_tag?post=69377"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-za\/blog\/api\/wp\/v2\/coauthors?post=69377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}