What’s the Difference Between Fixed Asset Management and Fixed Asset Tracking?

 

 

A square is a type of rectangle, but a rectangle is not always a square. The same is true for fixed asset tracking and fixed asset management. The nuances between the two are subtle, and many people use the terms interchangeably, but the distinction is important to note as you explore fixed asset management and tracking systems.

fixed asset management

Fixed Asset Management

Fixed asset management is an overarching term that describes the cradle to grave process of managing every aspect of a company’s assets, from the moment an asset is acquired to its eventual disposal.

 

It also enables keeping detailed asset records of your organization’s valuable property. Here are some examples of the types of information typically involved:

    • Purchasing details
    • Inventory
    • Maintenance schedules
    • Upgrades
    • Quantity
    • Location
    • Depreciation
    • Patterns of use

 

Fixed asset management software is often incorporated into the asset management process to improve visibility and control. This information allows you to know where a particular asset is in its lifecycle at any given moment and evaluate whether or not it’s providing value to your business.

fixed asset management

The Fixed Asset Management Lifecycle

 

You can use this information to make important financial decisions, maintain regulatory compliance, and understand how your assets are affecting your bottom line.

Fixed Asset Tracking

Fixed asset tracking is a critical component of fixed asset management, focused primarily on the last known location of each fixed asset. Fixed asset tracking specifically refers to the process of property control and auditing, typically using barcode and RFID technology.

The primary purpose of a fixed asset tracking system is to keep track of the whereabouts of your fixed assets, including:

 

It also enables keeping detailed asset records of your organization’s valuable property. Here are some examples of the types of information typically involved:

    • What assets the company has
    • Where assets are located
    • Who is using them
    • When they should be returned
    • What condition they’re in
    • When they need to be repaired
    • If they need to be replaced

 

So What’s the Difference, and Why Is It Important to Know?

Fixed asset tracking provides data on the location, quantity and condition of a company’s physical property, but asset management takes that data a step further to include analysis, predictions, and assessments of the assets for the purpose of financial accounting.

Fixed asset management software and fixed asset tracking software often offer you the ability to do both — manage your assets in terms of financial accountability and planning, while also tracking your assets to ensure you’re getting the most productivity from them — so as you’re searching you will likely run into both terms being used to describe the same product.

Now that you know the difference between the terms, you can communicate more effectively with solutions providers about what you need and what their systems have to offer.

Exploring asset tracking solutions? We’re here to help! To learn more about asset tracking, or for guidance in selecting the asset tracking system that is the right fit for your company’s application, contact us today.