This not only drives down administrative time but also reduces the reliance upon one or two experts responsible for the creation of highly complex spreadsheets that are impenetrable to anyone else on the finance team. By implementing a simple and automated system, businesses can “de-skill” the asset management role to gain further cost benefits. This strategy also supports the growing trend towards centralizing the finance role for organizations with multiple locations or operating companies. A centralized asset register supports the move to a shared service center across the entire organization, delivering significant financial savings.
In addition, automated generation of reporting combined with a full audit trail significantly reduces the time taken to undertake the year-end audit and confirm the asset value – resulting in a reduction in auditor fees.
It seems extraordinary that so many organizations are making the painful transition to IFRS, with its associated implications for asset valuation, without recognizing the administrative overhead and inaccuracy created by reliance upon spreadsheets.
The fixed asset register is key to business value in many ways. Disaster recovery strategies, business continuity plans, insurance claims and due diligence during a merger or acquisition all begin with the information recorded in the asset register.
Those businesses that recognize the need for a tailored asset management solution rather than a massive spreadsheet will not only enable maximum asset utilization and achieve a reduction in administrative cost, but will be in a very strong position once the economy swings around again.