Question

PART3. A good fixed asset system will provide for quick and efficient asset entry at the time of purchase, accurate tracking, customized depreciation calculations, and user-friendly reports for quick analysis. Required: Illustratethe features of a good fixed asset system. (5 marks)

Answer 1

Fixed asset means any asset that a company doesn’t plan on selling or otherwise converting into monetary value within the upcoming year after purchase. These assets usually relate to infrastructures such as buildings, lands or machinery, meaning that they’re not assets that are directly sold to customers.

There is always a question for companies having Fixed assets that how they ensure that fixed assets are operate properly. But managing fixed assets without a reliable system in place can have serious consequences. Assets that aren’t properly managed can go missing or get damaged without anyone noticing until it’s too late.

As an answer to the question companies can use Fixed Asset Management System. Which provides the companies accurate tracking of asset, customized depreciation calculations, quick analysis etc.

Features of the good fixed asset system are:

1. Asset Management: It enables the company to perform preventive or scheduled maintenance task that improve company’s performance.
2. Inventory Tracking: It enables the company to track supplies and tools across multiple sites, warehouses etc.
3. Fixed assets list and retired assets list
4. Inventory Management
5. Asset Grouping
6. Asset Retirement Plan
7. Complete asset tracking
8. Work order management