fixed asset management

For many companies’ experiencing growth, it’s likely that fixed assets such as laptops, vehicles, machinery, and even property form an important part of their capital structure. Surprisingly enough, however, asset management in most cases remains a manual affair. Too many companies depend on spreadsheet systems for depreciations, location tracking, and maintenance scheduling something that results in mistakes, non-compliance, and an inability to get the full value of the business.  Business Central by Microsoft Dynamics 365 is a powerful tool for addressing such difficulties, providing integrated asset management within the context of an entire ERP system. In this way, it turns a cumbersome process into a productive one. Here’s how Business Central can assist with fixed asset management.  1. Centralized Data and Automation  The first thing that makes the use of Business Central worthwhile is the absence of silo systems. In this system, you do not need to have an extra ledger in Excel that needs to be reconciled with your ledger account monthly. Rather, when you purchase a new fixed asset, you fill out its “Fixed Asset Card” by putting down all pertinent information, including the value of the asset purchased and how it will be depreciated.  Once this is done, the automated process kicks in as you prepare journals that are set up to make calculations for depreciation on an automatic basis into your G/L account. This applies whether you apply a straight-line method, declining balance method, or customized depreciation method.  2. Complete Lifecycle Management  It’s not simply a matter of acquiring the asset, recording depreciation expense, and then forgetting about it; asset management includes management of the full lifecycle of that asset. With Business Central, you can do just that.  Asset Acquisition: Integrate seamlessly with Accounts Payable and easily convert a vendor invoice into a fixed asset record.  Maintenance: Monitor repair expenses and maintenance schedules. This will allow businesses to determine the total cost of owning the asset and choose either repairing the asset if it is old or replacing it.  Asset Disposal: In case of asset disposal, system record gain or loss automatically with proper accounting entries.  3. Insurance & Compliance Management  Usually business forgets insurance documentation until something goes wrong. With Business Central, users can document the insurance information and even specify insurance amounts for assets. Users will even be able to create reports on the total book value of their assets compared to their insured amount.  In addition, for businesses that are required to comply with regulations and laws on many different levels, users can maintain separate sets of books for tax purposes and internal use.  4. Real-Time Reporting and Analysis  Finally, Business Central helps transform data into information. Using real-time reporting, one can perform analysis regarding asset usage, depreciation costs, and net book value. The management can now use this information to make informed decisions in the context of capital budgeting. The software helps find out the underused assets for selling, and whether there is a need to buy a new equipment.  Conclusion  Today, being efficient has become crucial. Using manually prepared Excel sheets for fixed asset management cannot be justified anymore. With the help of Business Central by Microsoft Dynamics 365, one can ensure data accuracy, comply with relevant regulations. Also have a better insight into the portfolio of physical assets. The balance sheet is not enough anymore, and it is time to embrace technology.