Blog: 6 Notable Trends in Fixed Asset Management

6 Notable Trends in Fixed Asset Management

Tech Falcon
Published on February 20, 2023

Fixed Asset Management is the function in which organizations track and manage their physical assets and equipment. Physical assets can include anything from transport vehicles, equipment, computers and more. These assets usually have long-term use and are important to the successful operations of the organizations. They need to be maintained and cared for on a regular basis to keep them in good working condition. Therefore, tracking and recording the purchase, depreciation, and eventual disposal of these assets are the key activities of effective fixed asset management. We list down some of the notable trends in the area of Fixed Asset Management software solutions.

Cloud-based Technologies

Systems for managing fixed assets that are housed in the cloud and accessed online are computer programs. They give businesses a consolidated platform to handle the tracking, depreciation, maintenance, and disposal of their fixed assets. Users can access the system from any location with an internet connection, which facilitates collaboration for distant teams. Cloud-based systems are more adaptable than conventional on-premise software since they may be scaled up or down according to an organization's needs. Users of cloud-based systems always have access to the most recent features and security upgrades since cloud-based systems are automatically updated. Cloud-based technologies reduce an organization's total cost of ownership by doing away with the requirement for pricey hardware and IT infrastructure. Encryption and multi-factor authentication are two examples of the robust security methods that are frequently used in cloud-based systems to protect sensitive data. Overall, a cloud-based fixed asset management system may automate and streamline many of the manual procedures associated with maintaining fixed assets, improving accuracy and efficiency.

Automation and Artificial Intelligence

The way firms manage their fixed assets is changing as a result of automation and artificial intelligence (AI). Fixed asset management solutions that use these technologies enable businesses to automate manual tasks and make data-driven choices. Fixed asset management systems with AI capabilities can automate the data collecting process, lowering the possibility of human mistake and improving the accuracy of the data. Organizations may reduce downtime and extend the lifespan of their assets by predicting when assets are likely to fail and scheduling maintenance appropriately using AI algorithms. AI may be used to forecast future depreciation rates, which can then be utilized to guide enterprises' financial planning and budgeting processes. Organizations can keep track of their assets with the aid of automated asset tracking, lowering the risk of theft or loss and ensuring they are fully accounted for. Systems for managing fixed assets with AI-powered insights can give businesses useful information they can use to make decisions regarding their assets. In general, increased efficiency, accuracy, and cost savings can result from the integration of automation and AI into fixed asset management. But it's crucial to thoroughly assess any dangers and moral ramifications before employing these technologies.

Mobiles and Wearable Technologies

In fixed asset management, mobiles and wearable technologies are becoming more and more common. Organizations are now able to access and manage their assets at any time, from any location. Mobile apps can be used to track assets in real-time, giving businesses the most recent details on the whereabouts and condition of their assets. Wearable technology can be used for remote asset inspections, giving maintenance personnel access to real-time information regarding assets without having to go back to their desks. Examples of wearable technology include smart glasses and watches. Asset data can be gathered through wearable technology and mobile apps, saving time and effort compared to manual data entry. Mobiles and wearable technologies can offer real-time asset monitoring, enabling businesses to spot possible issues and take preventative action to avoid downtime. Organizations may manage their assets remotely thanks to mobile and wearable technologies, which also makes it simpler for remote workers to access and update information about their assets. In general, the application of wearable and mobile technology to fixed asset management can increase the process' accuracy and efficiency while also giving organisations more flexibility and control over their assets.

Internet of Things (IoT) and Sensor Technologies

In fixed asset management, the Internet of Things (IoT) and sensor technologies are playing a bigger role because they give businesses new ways to keep an eye on and manage their assets. IoT-capable sensors can be affixed to assets to offer real-time data on their usage and performance, enabling businesses to identify possible issues and take preventative action to avoid downtime. In order to reduce downtime and lengthen the lifespan of their assets, IoT-enabled sensors can provide data that can be used to forecast when assets are likely to fail and schedule maintenance appropriately. Asset tracking with IoT-enabled sensors can lower the risk of theft or loss and guarantee that they are fully accounted for. Real-time asset data can be provided by IoT-enabled sensors, enabling enterprises to manage their assets remotely and facilitating quicker access to and updating of asset information by distant workers. IoT-enabled sensors can be used to track energy use and assist businesses in optimizing their usage, which lowers costs and increases sustainability. In general, companies can get more visibility and control over their assets through the use of IoT and sensor technologies in fixed asset management, allowing them to make better decisions and increase the effectiveness of their asset management procedures.

Blockchain Automation

Fixed asset management could be revolutionized by blockchain technology, which would provide businesses with new ways to track and manage their assets. A decentralized and secure record of all asset transactions would be provided by a blockchain-based fixed asset management system, lowering the risk of data breaches and guaranteeing the veracity of information. Organizations have a tamper-proof record of their assets thanks to the decentralized and encrypted nature of blockchain technology, which makes it difficult for anybody to change or modify asset tracking information. Smart contracts, which may be programmed to automatically carry out particular activities based on established rules, are made possible by blockchain technology. This can simplify asset management and lessen the requirement for manual intervention. Increased transparency offered by a blockchain-based fixed asset management system would make it simpler for businesses to track their assets and guarantee regulatory compliance. It might be simpler for enterprises to link their asset management procedures with other systems if a blockchain-based fixed asset management system is built to be interoperable with other systems and technologies. In general, the application of blockchain technology in fixed asset management has the ability to increase the process' efficiency, security, and accuracy while lowering the risk of fraud and guaranteeing regulatory compliance.

Integrated Software Applications

Fixed asset management is seeing a rise in the use of integrated software solutions, which give businesses a single, centralized platform for managing their assets. A unified platform for managing all facets of the asset management process, from acquisition to maintenance and disposal, can be offered by integrated software systems. By removing the need for manual data entry and lowering the possibility of mistakes, integrated software solutions can aid in ensuring the accuracy of asset data. Real-time reporting and analytics can be provided via integrated software solutions, giving organizations a better understanding of their assets and empowering them to make data-driven decisions. Integrated software solutions can automate tedious operations, giving asset management teams more time for other activities and boosting productivity. Integrated software solutions can assist firms in complying with accounting standards and regulatory regulations, lowering the likelihood of fines and penalties. Integrated software solutions can offer businesses a thorough and streamlined approach to managing their assets, enhancing the process' accuracy and efficiency while lowering the chance of compliance problems.