Financial reporting is one of the bedrocks of modern-day businesses and fixed assets accounting is a significant aspect of the reporting. Any discrepancies in asset information could lead to severe implications for an organization. Enterprises, therefore, are focusing on accurate asset reconciliation using modern solutions such as an enterprise asset management suite. Emerging technologies are redefining fixed asset accounting and reconciliation through connected fixed asset platforms to stay competitive in the digital era.
Enterprise-Level Challenges In Asset Reconciliation
Asset reconciliation compares fixed asset sub-ledger with the general ledger periodically to ensure the correctness of figures. Fixed asset reconciliation helps determine if the depreciation is properly charged, asset disposal is correctly booked, and adding new assets to a specific account is justifiable.
Many businesses downplay the importance of fixed asset reconciliation as they are focused on just-in-time production, emerging technologies, and a dynamic regulatory environment. Manual processes and (or) siloed solutions to execute inventory and asset reconciliation are one of the biggest challenges for enterprises. These legacy systems put pressure on front-line workers - handling paper trails, collecting data manually, cross-checking the entries, and traveling back and forth between the job location and the back office.
In the manual reconciliation approach, data accuracy is questionable due to the chances of human error. Miskeying data, hurdles in sharing information across teams, lack of security, and data duplication are a few problems that enterprises using legacy systems face. For asset-intensive companies, reconciling each point about every fixed asset and generating real-time reports becomes difficult.
Overcoming Challenges With a Mobile Enterprise Asset Management System
Asset inventory involves the complete transactional data of fixed assets, which is complicated to capture manually. Though most businesses use ERP systems and fixed asset management solutions to digitize their processes, their non-intuitive user experience is barring frontline workers from using these systems in the field.
An enterprise fixed asset management system changes this status quo and enables frontline workers to put accurate, reliable information into the ERP systems from the field itself. The solution is not siloed and connects teams across an organization to enable end-to-end fixed asset tracking. By providing real-time insights into your fixed assets, the enterprise asset management system saves workers’ time and improves data accuracy. It allows asset managers to create customized, role-based workflows for their staff.
The key benefit of having a mobile asset management application is the effectiveness of having real-time collaboration and information on fixed asset management. Adoption of GPS technologies, RFIDs, rugged tablets, and robust web service integration methods help enterprises build highly secure asset management solutions integrated into the enterprise systems. This helps in obtaining fixed assets data and better connections between mobile technicians, managers, and customers.
Choosing the Right Enterprise Asset Management Solution
A modern enterprise asset management system needs to achieve more challenging asset outcomes against a backdrop of ever-increasing regulation and financial constraints. Implementation of the solution needs to pull together resources to get greater efficiencies with better operational performance and financial transparency. The fundamental reason why organizations implement asset management is because it makes good business sense. Asset-intensive organizations need an ordered, structured, disciplined way of controlling assets.
To determine whether a solution suits your business, you should check if it offers the following features:
- Fixed asset physical inventory scheduling
- Ability to tag assets using pre-printed or printable asset tags
- Mobile assets counting with barcode scanning
- Real-time assets count status with reconciliation
- Built-in workflows for finance team approval
Automate Your Fixed Assets Reconciliation With Innovapptive
Innovapptive’s Connected Fixed Assets application, mAssetTag, delivers greater control and efficiency when planning, acquiring, auditing, taking inventory, and resolving fixed asset discrepancies. It helps in asset reconciliation scheduling and provides monitoring modules to centralize the periodic asset reconciliation process and update status through completion.
mAssetTag gives organizations greater control and efficiency when planning, acquiring, auditing, inventorying, and resolving discrepancies in fixed assets. It offers end-to-end mobile fixed asset management that seamlessly integrates with SAP and IBM Maximo, giving visibility into lost or stolen assets, eliminating overpayments, and aligning business activities with real-time inventory levels.
To learn more about our mAssetTag, watch this video or schedule a free demo.
