Fixed asset management is a prerequisite for every business to keep their systems in proper condition so that they can seamlessly function at their maximum capacity. To define in simple words, it is the system that keeps track over the fixed assets, along with their accounting and maintenance. While it’s a dire challenge for every organisation that operates from more than a single place to accurately track the status of every fixed asset, a legit ERP software integrated with an enterprise asset management system (EAM) can overcome that. Here explaining in details how ERP makes asset management a lot better when comes with an affixed asset management module.
#1 Helps businesses to become accurate at financials
For most businesses, fixed assets are a great part of investments. Thus, any miscalculation of depreciation values can result in catastrophic errors in the financial reporting. This calls for the end of reliance of organisations on age-old spreadsheets for estimating depreciation values and others for asset tracking and instead rely on an asset management system. Fortunately, EAM module helps enterprises to get detailed insights of assets’ life-cycle that enhance predictability and eliminates chances of any breakdowns. By giving more accurate information on assets, it helps enterprises to manage financials seamlessly.
#2 Makes assets profitable
While assets need to be monitored, evaluated and controlled all the time to make them fully functional and optimise the ROA of the business, the EAM module in ERP helps in managing them effortlessly. It raises the profitability of assets by controlling their financial accounting aspects, thereby leading to some savings.
#3 Brings efficiency in processes
An effectual asset management module provides a scope to businesses to mechanise all of their operations or processes that can seemingly expand the life-cycle of their assets. On the other way, a reliable ERP software minimises the paperwork and manual administration of assets which enhances efficiency. It helps in running quality check to keep an eye on every equipment, schedule or plan for new tasks, and keep close tabs on their inventory and other parts.
#4 Improves uptime
Enterprises often lose track over their huge sets of assets, especially when they are operating from different locations through many facilities. Thus, ERP is a great system to avoid such happening as it’s EAM module will allow insights into the equipment and inventory. This ensures that enterprises can manage well their services calls or any repairs and make every equipment work in order. Also, EAM successively helps in eliminating any unexpected breakdowns in the equipment which cost severely for the entrepreneurs.
There are multiple reasons to include EAM in an enterprise’s ERP software. However, the most crucial one is that it optimises and extends assets’ lifecycle by managing them across various departments and locations. This plainly puts forward that every organisation whose operation depends on huge assets need a comprehensive ERP that can provide facilities for asset tracking and management. While ERP is great at managing company financials and an EAM is best at asset management, merging both will empower organisation in asset management to the core.