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Asset tagging and asset management is an accounting audit process that tracks fixed assets for the purposes of asset depreciation, asset financial accounting, asset preventive maintenance, and asset theft deterrence. The most commonly used asset tag is the barcode asset tagging technology. For most assets, iodinized tags are recommended because they do not ware out easily.
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Asset tags are useful for many purposes. By maximizing your use of asset tags, you can reap benefits like enhancing your team’s productivity, boosting efficiency, streamlining operations, simplifying documentation and much more. Here are a few uses for asset tags you may not be aware of.
Quick, Easy Asset Identification
You don’t want to spend hours – or even precious minutes – tracking down an asset you need to complete a task. Every minute wasted on the clock detracts from your company’s bottom line. With multiple employees spending valuable minutes every day trying to track down assets, you’re losing a significant amount of productivity. Asset tags let you quickly pinpoint the location of any asset in seconds, not minutes.
Simplify Inventory Management
Inventory management is one of the most time-consuming and frustrating tasks any product-oriented business faces. Asset tags take all the guesswork out of inventory control. When used in conjunction with an asset management software application, the possibilities are endless. With your inventory data in a central database, manipulating data for analysis and making predictions is simple.
No matter what industry you’re in, it’s regulated by someone, somewhere. Whether your company is directly or indirectly accountable, asset tags provide a comprehensive data set that helps you maintain compliance, quickly identify issues, and develop resolutions when needed to maintain certifications.
Asset Tagging or Labeling is an Audit Requirement as per I.A.S 16.
The International Accounting Standards Board (I.A.S.B) in the year 2004 revised International Accounting Standard Number Sixteen (16) ‘Properties, Plant and Equipment’ marking asset tagging a Mandatory Audit Requirement. As a result of this, you should carry out asset tagging to comply with this rule and to assist your Auditors in carrying out physical verification of Fixed Assets during audit. If your auditors have not yet brought it up chances are they will be bringing it up in the next audit.
Streamline Usable Life Calculations and Depreciation for Tax Purposes
Tax reporting is yet another headache faced by companies across every industry. Expensive equipment must be depreciated, and calculating the usable life of all those assets is no easy task. Asset tags help you gather the essential data needed to make all those calculations – and when you use asset management software, the process is even simpler.
Asset Tagging provides Your Institution with an opportunity to Negotiate with its Insurers for Accurate and Lower Rates of Premium.
Firstly, when tagging is done with indelible property marking systems or tags it deters theft or pilferage of assets. This is because identifiable property is dangerous to handle and difficult to dispose of. It also helps in tracking your property if it’s in the possession of the wrong people. At the end of this exercise, you will considerably reduce the risk of loss of assets through theft or pilferage. It’s on the basis of this reduction of risk that you can negotiate with your Insurers for a lower premium. Secondly, property tagging will help your company to verify the physical presence of all your assets making you able to determine the True or Actual values of your Asset Base on a yearly basis. In this way, the company will provide to insurers the correct value of assets thus reducing the risk of either under or over Insurance.
Deter Theft and Unauthorized Transfer
Increasing security isn’t always something that comes to mind as a plausible use for asset tags, but it’s one of the biggest benefits. When high-value items, such as laptops, are clearly labeled with a durable bar code label or asset tag, thieves are less likely to swipe these items simply because they’re more likely to get caught. There are also asset tags specifically designed to provide evidence of tampering.
Coordinate Joint Use Across Multiple Departments
Assets that aren’t used daily are often shared across multiple departments. The education setting is a perfect example, as A/V equipment is frequently moved from room to room and shared among dozens of educators. Coordinating the use across multiple departments can get complicated, with overlaps and double-scheduling creating havoc in even the most organized settings. Asset tags allow you to streamline scheduling, ensuring that no asset is ever double-booked and making it possible to use a single asset more efficiently across an organization. While you may have been aware of some of these uses, it’s always interesting to take a closer look at the various ways asset tags can be used within an organization. If you’re using asset tags and aren’t taking advantage of some of these uses, implementation is easy. And if you were on the fence about incorporating an asset tracking system, consider the multiple ways a single investment will continue to benefit your company over many years.
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