Its amazing to consider just how much our dependence on IT has increased since a decade ago.You can’t find a single department in an organization these days that doesn’t depend on computers to work. So much so that efficient use of IT has given many a company the competitive edge over its rivals.
Behind this dependence on computers lies a heavy reliance on the IT hardware and systems supporting this. By this I mean computers, peripherals, screens, software and specialised electronic equipment. The value of this runs into trillions of dollars in the US alone.
But IT assets are notoriously tricky to keep track of and manage, particularly in large, sprawling organisations. If you lack the proper control and strategic overview on when and how to replace and renew outdated equipment it often has rather chaotic ramifications. Information on exactly what IT equipment and software is being used is unavailable. Noone has an handle on software usage and whether that software is properly licensed. The IT helpdesk gets inundated with requests that it can’t deal with because of a lack of information about users’ machines. Upgrading equoment or moving to different sofware packages can descend into a slow, inefficient chaos.Sound familiar? Well it’s surprisingly common in today’s organizations. Dealing with these problems, moreover, can have a hefty price tag. This is even more true when you look at the accountancy aspect, particularly the capital depreciation of IT hardware and assets – having this info can bring big savings in tax.
The bottom line is that without managing your IT assets you could be haemorrhaging unknonwn amounts of cash through related costs. The answer comes down to a process called fixed asset management. Fixed asset management for IT hardware and software basically falls into two distinct categories
Management of Physical Assets. Essentially this is all about keeping a record of the IT equipment, hardware and software existing in the company or organization. Included within this is an inventory of what is owned, their locations and their functions. A robust system of asset tracking provides you with invaluable information on which you can act and introduce greater levels of efficiency.
Financial Assets. This is where a business can plug some serious leaks in costs.After recording the equipment being used it is then possible to make a calculation of expected depreciation in value. This information is music to your accounting deparment’s ears, as cutting costs on fixed assets can sometimes be the difference between profit and loss in a financial year.
Quite often the problem is not that companies do not know about these issues around managing their IT assets. They just do not have a clear solution of how best to resolve them. The old method of using an Excel spreadsheet to record fixed asset inventory is clunky and inneficient. However there are now highly sophisticated asset management software solutions on the market that are designed to tackle all aspects of asset tracking, accounting and management. Perhaps it is time for your organization to make that crucial investment.
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Mariano M. Jauco has been empowering business professionals and individuals by sharing his knowledge to produce positive change in the world. His personal development techniques and methods will allow you to reach your goals and achieve the success and prosperity you deserve.
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