Fixed asset management is considered a mandatory task and plays an especially important role in any type of business. To do it well, businesses need to understand the types of fixed assets and choose suitable management methods. Let's explore these questions in more detail with Sbiz.vn in the article below!
What types of fixed assets does a business have?
As mentioned above, to manage fixed assets effectively, a business first needs to understand what these assets are and what types they include.
A business's fixed assets are high-value assets used over many of the business's production and business cycles (more than 1 year) that gradually depreciate during use.
A business's fixed assets fall into 2 types:
Tangible fixed assets:
Assets used over many of the business's cycles that keep their original physical form and meet certain conditions, such as: the business can obtain benefits from using the asset, it has a useful life of more than 1 year, and its historical cost is 30 million VND or more.
Understanding the classification of fixed assets in a business
These include vehicles, machinery, equipment, buildings...
Intangible fixed assets:
Assets with no physical form that take part in many of the business's cycles, meet the conditions for fixed assets and represent a certain cost or investment the business must make to acquire them.
These include software programs, land use rights, copyrights, patents...
How important is fixed asset management for a business?
To better understand the importance of fixed asset management for a business, let's look at a small example:
If a business owns 3 printers, a single notebook is enough to record the number of repairs, monthly maintenance costs, etc. But when a business owns 300 printers located in many different places, can it still update and control the information well by writing it in a notebook?
So, broadly speaking, when a business has many fixed assets spread across many different locations, putting in place a management system to track, update and control asset information is essential, helping the business:
Increase productivity and ensure transparency and rigor. A management system helps the business collect information and data quickly, accurately and in more detail in a short time.
Increase accuracy by eliminating avoidable errors caused by human mistakes.
Organize the business's asset categories logically.
An asset management system helps businesses organize asset categories logically
Measure and monitor asset life-cycle costs effectively.
Drive the business's future growth.
Fixed asset management measures in a business
In today's modern economy, the results can be poor if a business keeps following the old rut of manual management, passive data entry and information storage, and old, inaccurate files! To avoid falling behind, besides an effective fixed asset management process, choosing a smart, suitable support tool is something businesses need to pay special attention to. SmartBiz IoT, with its ability to automate processes, is the optimal choice, helping to:
Ensure accuracy and transparency when checking and declaring information about the business's assets to State authorities.
Control performance and optimize asset operation, closely monitoring and tracking the operation of large numbers of fixed assets in many different locations, while improving equipment maintenance with predictive maintenance methods.
Ensure data integrity and security.
Calculate fixed asset depreciation accurately and efficiently, thanks to information that is always automatically and accurately updated and tightly managed at every point in time.
Managing fixed assets with SmartBiz IoT keeps managers on top of the state of their assets, so they can pinpoint the right time to plan new purchases for the business.
SmartBiz IoT automates management processes, improving fixed asset management effectiveness
Save time and budget effectively for the business.
>>> Learn more: SmartBiz IoT - the most effective solution for managing and maintaining production assets today
In short, fixed asset management plays an important role in a business, because it directly affects the organization's vision and future plans. Whereas fixed asset management used to revolve around passive tasks and rigid, outdated, error-prone files, managers today are increasingly aiming to automate management processes, with information and data continuously and accurately updated in real time and highly secure.
This is clearly the inevitable Industry 4.0 trend in management today, helping save costs and increase competitiveness. If your business would like more specific advice on the SmartBiz IoT platform for fixed asset management, please contact Sbiz.vn right away for the fastest detailed support!