Every business organisation has to keep track of its assets and liabilities to arrive at the correct profit figure. Now, assets can be of various types depending on the kind of industry. You have fixed assets and movable assets. You have current assets and non-current assets. You need to track every kind of asset.
One of the easiest methods in use today is the barcode technology. It is easy to assign bar codes to physical assets and monitor them at the same time using the bar code readers. We shall see the benefits of asset tagging to the business enterprises.
Which assets to tag
Usually, the companies tag the high-value assets such as furniture fixtures, computers, machinery, and movable assets too. The main purpose of tagging the assets is to keep track of fit and avoid any kind of duplication. In business, every asset has a value. Tagging the assets can help you calculate this value with a great deal of perfection.
The advantages of tagging assets
- When you tag an asset, you have the geographical location of the asset with you. You are able to track it as it moves through the cycle. This is applicable in the case of the movable assets alone. This is very useful for tracking the amount of sales, etc. Tracking the current assets can help you in determining the exact revenue you earn.
- You have to maintain a stock of your inventory every time you prepare your book of accounts. Tagging the assets help you in easier finalisation of the accounts. You have the figures ready with you.
- Tagging your assets can be useful to determine the shortage of material or stock. You have first-hand knowledge about the stock of material on hand. This enables you to order for replacements on time thereby saving you time, labour, and money.
- Tagging your assets is good from the security aspect too. You can manage to keep track of the asset. You know its whereabouts. Pilfering of tagged assets is difficult. Therefore, from the security aspect of things, tagging assets is very useful.
- Certain industries have to comply with certain specific rules and regulations. Tagged assets help you to determine the compliance min an easier way.
- Last, but certainly not the least, you are able to provide excellent customer service when you tag your assets properly. This becomes more important when you have to contend with sales returns. There could be defects in the products.