Everything You Need to Know Before Buying Asset Management Software

If your organization is spending too much time and money wading through the administrative complexities of dealing with its assets, it might be time to consider investing in some form of asset management software. There are many benefits to this type of system. One benefit is that you are likely to quickly see resource savings. Let’s take a closer look at some of the key considerations that you should make before you take the leap.

What is asset management software?

Essentially, asset management software is any system that allows an organization to list, track, and monitor its fixed and other, less physical assets. Remember that the term “assets” generally covers more than what you might initially assume. Company vehicles and IT equipment are good examples of traditional assets, but today’s modern business environment also often requires more virtual assets to operate. From software licenses to intellectual property, there are many assets that are intangible but are equally valuable to a company and must be included in the asset management process.

What benefits does asset management software have over traditional asset management processes?

Until relatively recently, most organizations were making do with managing their assets manually, often by using a spreadsheet with built-in macros and formulas. The use of asset management software has gained much popularity during the last decade. It has the capability to dramatically ease the administrative burden involved in tracking the often diverse assets of a company.

Such software allows your business to quickly and easily list and categorize your assets, using a labeling system that works for your organization’s needs. You can make changes in seconds. Most systems offer solid reporting functionalities so that you can monitor the cost, condition, and depreciation of your key assets at the touch of a button. Many manual methods are certainly more prone to errors or inconsistencies, potentially leading to the misrepresentation of assets from a financial perspective. These methods can adversely affect the accuracy of the company’s balance sheet, resulting in inaccuracies and issues with regulatory compliance.

Using asset management application is also an effective way of ensuring the security and integrity of data relating to your business assets. As staff turnover is increasing in many sectors, making sure that only the appropriately authorized employees have access to data relating to your key assets is vital. Asset management software uses the most modern technology to allow you to set clear parameters and permissions to protect your data.

What factors should I consider before investing in asset management software?

With so many providers on the market offering different types of solutions, it is imperative that you undertake a thorough cost-benefit analysis of your needs prior to purchasing asset management software for your organization. 

First, consider the type and makeup of assets that your business holds. Much of this will depend on the size and type of organization, as well as the industry and country in which it operates. For example, a transport company may own a fleet of vehicles of high value, whereas a company that relies on web-based programs to run its operations may need to coordinate a number of different license and usage-based types of software. 

With home, remote, and mobile working being so popular, you may discover that your organization holds many more assets in the form of mobile technology than you initially realized. Your asset management software needs to have the functionality to deal with the differing needs of such assets to provide you with the best value.

Second, consider whether you would benefit most from working with an asset management system that is hosted in the cloud or on a server. Cloud hosting often offers lower cost and maintenance than server-based systems. However, it is really worth researching the market to see the options available to your size and type of business to ensure that your investment is worthwhile.

Choose the right fit for your business needs

Companies offering a one-size-fits-all style of asset management software are unlikely to have the sophisticated functionality to offer a tailored solution to meet the specific requirements of your organization. Shortlist a handful of different providers and ask for demos if possible so that you can be confident that the solution has the capacity to suit your business needs.