It’s rare that anyone starts a business, only to sell all of the assets they own, when those assets are used to produce the product that they actually sell. These are referred to as fixed assets, not because they can’t be moved, but because the business doesn’t intend to sell them as inventory. Inventory is not classed as a fixed asset, because it is the product you want to move, or sell frequently. A fixed asset is also known as PP&E, or Plant, Property and Equipment, what could be referred to as capital assets. Accentis Enterprise has a complete Fixed Asset management module to allow you complete asset control.

Well if I’m not selling it, why does it effect my business growth?

Managing fixed assets is the only way to determines how much value that item gives your business. If you were a plastics manufacturer with a large extrusion machine, you need that machine to sell your plastic components. If you sell your asset, you can no longer make your plastic components, and will soon be out of the plastic component business! The only way to really grow your business, is to manage your asset to get the best return on investment for it, and that’s to use it to make plastic components.

Over periods of time, depending on the PP&E, the value of the items decrease and need to be replaced. Some of your assets will be with you for many years to come, while others might get replaced annually. Each item is different and needs to be recorded as such. Take a look around your work space and put a price on everything the business owns. What is the value of that item to your business in cost, versus the value in what it allows you to do for your business? In many cases, when businesses hire multiple staff, there needs to be more equipment for them to be able to do their jobs. 3 staff members might mean you now need 3 computers, with each PC needing 2 monitors. All of a sudden the business owns 3 PC’s and 6 monitors. The PC’s might get upgraded annually or bi-annually, but the monitors might not be upgraded until required. You need to be able to manage this, and account for the value of the item, and how much value it brings to the business, to help you decide if it should be replaced.

Each time an item needs to be replaced, maintained or repaired, that comes off the profit for the business. If assets are needing to be replaced before the end of their life-expectancy, it’s a cost the business needs to be able to weigh up. Accentis Enterprise controls and reports on your PP&E, so you can minimise the costs put on your business, to allow maximum profit. Accentis allows items to be depreciated automatically, in bulk or even suspended. All warranty information can be recorded along with the expiry dates. Our module will support leased assets, and you are able to record assets with barcodes, images and more. There is no limit to the number of assets that you can keep track of, and items can be tracked regardless of their location.

Preventing asset loss and maintaining asset value saves money that can be used to grow your business. Where would you rather spend your profit, to reinvest in your business to increase growth, or for the purchase of items you already own? We know where we’d put our money…