Fixed Assets Inventories: Should you go in or out?

Managing a Fixed Assets Inventory

Conducting a fixed assets inventory is often the first step in setting up an effective fixed asset management programme, but it can be time-consuming and expensive if not managed efficiently. Organisations have three broad options open to them when planning an inventory and selecting the right option for you will save time and reduce costs.

What are the options?

Each organisation has it’s own approach to managing fixed assets but at some point that is going to involve conducting a physical inventory of those assets. Often a physical inventory is carried out to correct an inaccurate asset register or prior to implementing fixed asset management software. For asset-intensive organisations with high-value equipment, an inventory may be more frequent.

Whatever the reason, organisations will need to decide who is going to manage the inventory and how it is going to be carried out. There are three main option to choose from:

• Carry out the inventory yourself
• Outsource the inventory
• Invest in a Fixed Asset Management System

Each option will involve different costs and benefits for an organisation and the best option will ultimately depend on the individual circumstances.

1. Carry out the inventory yourself

DIY may appear cheap and quick, but as anyone who has ever attempted a DIY project at home will tell you, things can quickly get out of hand. This approach is likely to work best if you have relatively few assets or have a reliable tracking system in place already.

2. Outsource the inventory

Outsourcing will often be the most sensible option. Inventory services firms will usually quote for an audit based on a set rate per item and the cost will often work out cheaper than DIY when you factor in all the costs.

3. Early investment in a Fixed Asset Management System

A third option may be investing in a specialist Fixed Asset Management System from the outset. This approach has several benefits:

If you would like to find out more about getting the right tools to help you with carrying out your inventory or to manage your fixed assets more effectively once you have completed one and integration of order management, then please contact us here or email sales@fmis.co,uk