What is Asset Management Software?

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What is Asset Management Software

Asset management software is a program that helps a company keep track of its property. Though asset tracking software is usually utilized by corporations and large companies, asset management tools are also available for small businesses and individuals.

Because these software tools can streamline tracking, record-keeping, and other tasks, they can prove especially useful for small business owners and sole proprietors who have a limited amount of time for asset management, data entry, and other administrative tasks.

What Is Asset Management Used For?

An asset management system does much more than keep track of a company’s property. It records data throughout the lifecycle of each asset. Asset management software users can collect real-time data, analyze it, and use it to come up with solutions to operational problems, reduce operating costs, and plan for updates or replacements.

What Is Asset Management Software’s Effect on Day-to-Day Operations?

This software can track your assets, but it can also tell you who is using them, where they are, and their condition. The system can rely on barcodes, radio-frequency ID tags, or GPS units to provide real-time data. You can also ensure that each tool or piece of equipment receives proper updates and maintenance.

For example, if your job involves IT asset management, you can track updates of all the computers, routers, and servers in your company to ensure that they receive proper software and security updates.

With this system, you can ensure that no computer misses out on important updates.

An asset manager uses these software applications regularly, but other members of a company also rely on these tools.

What Is Asset Management Software Used for Besides the Management of Physical Assets?

Assets can include physical property, but it can also track digital assets. For example, if your company has a software license, an asset tracking application can store the details of the license and provide information about renewal or updates. You can also ensure that the usage complies with the details of the license agreement.

Assets can also include property, such as office space, commercial apartment buildings, warehouses, stores in a retail chain, or investment properties. The asset manager for a company can track fleet vehicles or trucks, servers, and even office furniture and equipment such as copiers.

In other words, asset management software is flexible, and you can use it for a wide variety of applications for both physical and digital property.

What Else Is Asset Management Capable of Doing?

Asset management software is a tool for people directly involved in asset management. However, its capabilities and uses go far beyond tracking and managing items.

First of all, asset management software can keep detailed records and update data about assets in real-time.

How Is This Useful?

Here’s an example. A real estate firm or an individual commercial real estate investor could use asset management software to maintain a complete database of information about their properties. The software could include:

  • Information about leases, such as lease type, start and end dates, payment agreements, and terms.
  • A complete schedule of property maintenance.
  • A report on maintenance costs and budgets.
  • Information about insurance coverage, taxes, and utility costs.

All this data is available to asset management software users in a few clicks or keystrokes. Not only can property managers use these applications for their tasks, but accountants, leasing agents, and members of the legal department can also find data that they need to perform their jobs.

What Does Asset Management Software Have to Do With Tracking Property Through Its Lifecycle?

  • You can track the fair market value of both new and used assets. This feature can be useful for the disposal or reselling of older assets. You can also use the data to find fairly-priced equipment to replace your aging assets.
  • You can plan, track, and verify maintenance, updates, and improvements to your assets. This feature will ensure that you get the most value and utility out of your assets during their lifecycle.
  • You can include information about the expected lifespan of assets so that you can plan a budget and foresee the need for replacements.
  • You can also easily access warranty information. This feature can be useful for office managers or property managers when it comes to cutting repair costs.
  • You have information about install or purchase dates, which can aid you when planning for the life cycle of each asset.

What Is Asset Management Software Useful for in the Decision-Making Process?

At the executive and management-level positions, every day brings decisions that can affect a company’s bottom line. Asset management software can help make some of these decisions much more manageable. How?

Let’s take the example of the total cost of ownership for an asset.

The total cost of ownership for an asset is its initial price added to the maintenance and repair costs. Since asset management software gives you lifecycle data, you can see the total cost of ownership and weigh that against the price of a replacement or repair.

When you have all the information in one place, deciding on repair or replacement only requires doing some simple accounting math. You can see in dollars and cents which choice would have the least impact on your operations budget.

What Is Asset Management Software Have to Do With the Procurement Process?

Many businesses have close relationships with vendors or suppliers. Materials, equipment, or other operational assets come and go through a company daily. In industries such as manufacturing or retail, the performance of your suppliers and vendors is as vital to profitability.

With asset management software, you can see the performance of your vendors in terms of cost, value, services provided, and reliability. You can have all the metrics in one place, so audits, comparisons, and budgeting tasks get streamlined.

You can also see cost and efficiency data that relates to your supply chain. This feature can help you look for areas where you can cut costs or improve efficiency. Procurement managers can use all this data to find suppliers or vendors and carry out negotiations. Because you have all the data at your fingertips, you know precisely what the goals of your talks are before you start.

How Else Can Asset Management Software Help?

Asset management software can help you streamline operations and procurement costs, but it can save your business money in another way too. Asset management software can interface with accounting software and other IT systems. Since all the data is in one place, you can significantly reduce administrative costs.

A company can use this centralized system rather than relying on people to enter information into different databases and spreadsheets. Not only does asset management software make it easier for employees and decision-makers to access all the data, but having it all in one place limits the chances of human error. Mistakes are almost inevitable when you have administrative personnel entering data, sharing spreadsheets, and organizing files manually.

In addition to having to hire fewer administrative workers, you also can reduce the costs associated with human error.

It is quite clear that asset management software can improve operational performance and decrease costs in multiple departments in a business.

What Is Asset Management Software in Today’s Workplace?

The next question is this: what should you expect from your asset management software?

Not all asset management software is created equal. Yes, today’s best asset management software offers an improvement over spreadsheets, reports, and file sharing. However, you should expect a lot more out of your asset management tools.

First of all, you should expect your asset management software to provide real-time data. This feature is essential for many businesses because decision-making happens in real-time, and you want the most up-to-date information to inform your decisions.

Secondly, you want your system to be as accessible as possible for the people who need to use it. In some cases, the people who use asset management tools work in an office, but others may be on the manufacturing floor, at a retail location, or on a job site. They still need to make decisions and have access to real-time data.

Good asset management software will offer mobile applications that employees with asset management duties can use when they are away from their computers. Thes apps need to provide the same features as a desktop version because some employees are in the field for most of their workday.

Asset Management Software and the “Internet of Things”

The Internet of Things describes embedded hardware or software systems connected to the internet. These integrated systems can be on equipment, vehicles, or remote sensors and monitors. A quality asset management software product will allow you to connect to these systems and will track the data that they provide in real-time.

What Is Asset Management Software Security?

When you have a powerful, connected, and far-reaching software tool, security is vital. A quality asset management software vendor will ensure that security systems are in place during the implementation phase and software deployment. They will offer timely security updates and provide training materials so that employees know security procedures.

Why Are Training and Support Vital?

An asset management software vendor will not just offer information about security; they will provide training and learning resources so that a company can fully use the system. The first step in this process is ensuring the proper education of employees who will use the system. A quality vendor will make sure that a company is using the software correctly and that they have the resources to teach new employees to use the system when needed.

Support goes beyond training, however. One of the most critical aspects of asset management software is its ability to interface with other systems that a company uses. Most companies will already have some of these computer and network tools in place.

An asset management software vendor should be willing and able to work with a client’s IT department to ensure that the software gets integrated with existing tools and works together with them rather than independently. This step is vital for any company that is investing in asset management software.

Finally, useful asset management tools need to be flexible and scalable. In addition to finding a vendor who is willing to work with an IT department to integrate existing systems, you need a software system or suite that can meet the needs of your specific industry. For a shipping business, that might mean vehicle tracking, maintenance scheduling, and records for independent contractor drivers.

For a property manager, asset management software needs to track lease agreements and payments, maintenance schedules, and also provide data about market values and the real estate industry.

The best asset management software vendors can tailor their products to meet your specific needs.

Quality asset management software can help you streamline your business operations regardless of the size of your company or your industry. You need a vendor who is willing to listen to your needs and present you with software solutions that meet those needs.

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