A Guide to NetSuite Fixed Assets Management
A Guide to NetSuite Fixed Assets Management
NetSuite Fixed Assets Management solution automates the management of all the fixed assets such as buildings, furniture & fixtures, machinery, and vehicles. It automates a company’s asset lease management processes and streamlines the complete asset lifecycle. It unifies the accounting procedures with asset management enabling businesses to eliminate manual effort in maintaining complex spreadsheets and keeping track of assets acquisition, usage, deprecation, valuation, revaluation, and writing-off the asset.
What is Fixed Asset Management?
Fixed Asset Management refers to tracking and monitoring fixed assets, including machinery & equipment, furniture & fixtures, buildings, vehicles, manufacturing equipment, office, and IT assets.
These are long-term assets, generating revenue for the business over a number of years. The fixed assets can be tangible or intangible. The former refers to assets with a physical presence that can be seen or touched. The latter refers to those not available in a physical form but have a significant bearing on the business’s profitability. Thus, have a monetary value and are recorded in accounting books.
Some prominent examples of tangible assets a company owns are land and buildings, machinery & equipment, furniture & fixtures, vehicles, and inventory. The intangible assets include goodwill in the market – the company’s brand image, reputation, customer relationships, and intellectual property rights such as approved patents, copyrights, etc.
It’s essential to manage the tangible and intangible assets of the company because they have a massive impact on the company’s financial health and affect the business’s profitability. Estimating the correct value of tangible and intangible assets helps companies and stakeholders make critical investment decisions.
It also helps mitigate risk by anticipating issues and adopting preventive asset maintenance measures. Fixed asset management is possible when complete records are available and are appropriately maintained. The software provides information on the entire asset lifecycle – asset maintenance, valuation, depreciation, etc. It also helps accurately calculate the tax liabilities and ensure compliance with the accounting guidelines.
Why is Fixed Asset Management important?
Fixed asset management is critical for various reasons, and businesses must invest time and use technology to streamline the process.
Fixed Asset Management in Compliance
Fixed Asset Management ensures compliance with regulatory requirements, including adherence to the accounting norms such as IFRS and GAAP. The process enables accurate reporting of assets.
Fixed Assets Management for Cost Savings
The fixed asset management software provides predictive maintenance and forecasts issues. Companies can immediately take remedial action and prevent major technical and commercial problems. They can extend the assets’ lifespan and get a high ROI. It results in substantial cost savings as the assets need not be replaced often, and preventive maintenance helps fix the issues proactively. It prevents the problem from escalating to something bigger that can drain the financial resources.
Improved Financial Reporting:
Fixed assets management services allow businesses to correctly report their financial statements and arrive at the correct numbers in the income statements. An accurate valuation of the assets, their depreciation, and disposal have a considerable bearing on the fixed assets’ accounting, which should be correctly reflected in the books.
Asset Monitoring in Fixed Assets Management
Management of fixed assets helps companies monitor the assets’ lifecycle efficiently. Businesses need to record asset acquisition, performance, depreciation, and disposal of the asset and their correct valuation at each stage. The software streamlines each activity.
What is NetSuite Fixed Assets Management?
NetSuite Fixed Assets Management is software that automates all the activities necessary to manage fixed assets efficiently. It helps in accurately calculating and timely reporting the fixed asset depreciation and lease accounting. Automating the process eliminates the time-consuming asset lifecycle management process with spreadsheets.
It also provides actionable insights into the asset lifecycle that enables businesses to extend the assets’ lifespan, preventing unnecessary expenses in prematurely procuring new assets. NetSuite Fixed Assets Management supports the following aspects of fixed assets:
Asset Acquisition
Asset acquisition is a critical part of the fixed asset management process, which entails the decision-making and recording of assets acquired by a business organization. Fixed assets include building, machinery, fixtures & equipment, land, vehicles, etc.
It has various steps, including determining the need for a new asset based on the requirements. The assets may be worn out, and the business may need new assets due to expansion plans and therefore needs new assets. The budget must be determined based on the company’s financial health and the requirement. The concerned team needs to negotiate and buy the asset at the best price for the organization.
Asset Tracking
Asset tracking refers to monitoring the assets throughout the asset’s lifecycle. It is an integral part of fixed asset management, which enables the business to keep accurate records of the fixed asset and correctly calculate its valuation, monitor its condition and depreciation, and, finally, calculate the correct valuation at the time of the disposal. Different steps are involved in asset tracking, such as maintaining an asset register capturing all the details like the type of asset, registration number, purchase date, etc.
The assets are tagged with barcodes to enable effortless tracking of the assets. Businesses can track the asset movement and its usage throughout the lifecycle. They can track the maintenance of the asset- repairs, usage, depreciation, and disposal of the assets. Asset tracking is critical to the optimum utilization of assets and making informed decisions about the assets, and getting a high ROI.
Maintenance Management
Maintenance management is vital for every business. It involves organizing and implementing maintenance activities. It helps companies to manage the timely completion of maintenance activities, which ensures that the asset works appropriately and all the required functions are performed in the best manner.
The maintenance management component of fixed asset management enables businesses to reduce downtime and lessen the impact on the business’s functioning. Extended downtimes result in enormous losses for the company, so it’s necessary to keep track of the performance of the assets and, if required, immediately facilitate the repair of the assets. Maintenance management extends the asset’s lifespan by forecasting issues and timely repair, giving the business a high ROI.
Disposal Management
Disposal management is a crucial step in the fixed asset management process, which helps the business in the appropriate disposal of the assets which are no longer serving the purpose and need to be disposed of.
Companies must identify the assets that need to be disposed of and decide the best method. It is also essential to accurately evaluate the asset’s valuation at the time of disposal. The assets must be prepared for disposal, and the entire process must be documented.
Reporting
Reporting is also integral to fixed asset management, which lets the business track the asset lifecycle – acquisition, usage, depreciation, maintenance, and disposal.
Asset depreciation and amortization are critical phases in the asset lifecycle, and the management process involves accurate calculation and representation in the books. It includes maintaining an asset register which provides all the details of the asset, cost, acquisition, depreciation, valuation, revaluation, and disposal. Reporting includes maintenance details, deprecation information, and compliance reports mentioning asset compliance activities with external and internal regulations.
Reporting helps the business manage the entire lifecycle of the assets, make proactive decisions to extend the life of the assets with predictive maintenance and forecast the needs of new assets. It helps the business improve the asset management process and reduces costs.
Benefits of NetSuite Fixed Assets Management at a Glance
NetSuite Fixed Assets Management helps businesses automate their fixed asset management process. The software provides businesses with accurate and real-time information about their assets, and they can keep track of their assets throughout their lifecycle. Companies can prevent issues with forecasting capabilities and ensure a smooth operations workflow.
It also helps calculate the depreciation value correctly, enabling the maintenance of accurate records and making better decisions regarding the disposal of the assets and new asset acquisition. The software is embedded with comprehensive reporting capabilities that provide deep insights into different aspects of asset management. Businesses benefit from maintenance reports, depreciation reports, compliance information, and forecasting reports.
The asset register includes information about depreciation, cost, valuation, etc. The software, on the whole, is a comprehensive solution that enables businesses to increase efficiency in managing fixed assets and reduce costs associated with managing fixed assets.
NetSuite Fixed Assets Management can be easily integrated with other modules within the NetSuite platform. Businesses can easily track the purchase of assets and streamline the asset acquisition process. The software automatically updates the asset register letting the business track asset management with real-time information.
The accounting module can also be integrated with the fixed asset management software, automatically recording journal entries. It speeds up the process by eliminating manual entries and human errors.
How can Cloudiotech help you effectively implement the NetSuite Fixed Assets Management solution?
NetSuite Fixed Assets Management is a one-stop solution that allows businesses to manage fixed assets more efficiently. It enables complete control of fixed assets, reducing downtime and ensuring the smooth functioning of the company. Its centralized data management system allows effortless monitoring of the assets, keeps track of their performance, and makes informed decisions with predictive maintenance.
The software automates the process and allows businesses to comply with accounting and tax regulations. Companies can accurately manage assets with complete data and real-time actionable insights, enabling them to adopt a proactive approach to asset maintenance, depreciation, and disposal.
Cloudiotech can help you optimize the benefits of NetSuite Fixed Asset Management software by helping you customize the solution per your business requirements, ensuring effective implementation. Further, Cloudiotech ensures that your team is adequately trained in using the solution and offers post-implementation support to address any future concerns.
With Cloudiotech’s support with NetSuite Fixed Assets Management, manage your fixed assets as per the regulatory requirements with cost reduction and optimum utilization of the assets.
Enhance the ROI on your fixed assets with
Cloudiotech’s support on NetSuite Fixed Assets Management.
