It involves monitoring a company’s physical assets using GPS tracking systems, barcode scanners, or radio-frequency identification (RFID). These assets can include tangible items like computers, generators, and vehicles, which are important to a business’s functionality and value.
In contrast, intangible assets such as contracts, software, and patents also hold value but are not physical items. It’s important to note that assets are distinct from inventory, which is the stock a business regularly keeps. Instead, assets are used to stock and manage inventory. Implementing a detailed asset management system can be incredibly beneficial for a business. It can help identify valuable assets and identify those that can be sold or disposed of to free up space in the workspace.
Knowing what assets a business has can also help them upgrade or replace items to remain competitive in their industry, find more efficient ways of doing things, and cut costs. Additionally, accurate asset tracking can help with record-keeping and tax compliance. In some industries, it’s even required by law. Therefore, investing in asset tracking can help businesses stay ahead of the game.