Why Do I Need Asset Management & Tracking?

When you begin a business, you go through the basics. You need an idea, you need a place to conduct your business, you need items to help provide your goods to clients, you need inventory, and, most importantly, you need a way to track the inventory and assets in an organized fashion.

From an accounting standpoint, it is clear why an accurate inventory system is crucial to a business. The net worth of the assets a business has rolls into the net income of the business itself. In order for corporations to calculate the net income, accurate asset values have to be obtained and factored into net income results. Fixed assets, like property and equipment, depreciates at a certain rate, and that depreciation factors into the company’s overall net worth. Having a system that can track the depreciation day to day in order to provide real time information regarding a company’s standing is important.

In addition to seeing the overall value of the company, having an individual manually track inventory on a daily basis and compare to what is being reflected in the inventory management system is a good way to verify the system’s accuracy and the inventory itself. By having an individual tasked with the responsibility of taking a daily inventory to check against the inventory listings in the system. This holds employees accountable for the inventory as well as verifies the physical counts with the inventory system tracking.

Knowing which items you have, the cost of those items, and tracking the sales of such items allows a company to keep their highest grossing inventory in stock. Tracking purchase trends of these items by consumers can help a company determine the number of units to have in stock during certain times of the month or year. This tracking can help decrease the amount of inventory stored and purchased while still keeping up with the purchase demands.

Having an accurate system which can handle the daily workings of your business, such as assetGEEK, makes reporting and tracking easy. With simple, easy to use interfaces, these programs allow business owners of every size the opportunity to track, report, and manage inventory information.

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