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IT Asset Control can Reduce Business Costs

June 29, 2009

When you consider the business landscape of just 10 years ago, the use of computer equipment has skyrocketed exponentially.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. Just in the United States this amount is in the $trillions.

Monitoring and tracking IT assets can be really tricky to get a handle of, in particular for larger companies. Without tight control, monitoring and a strategic approach to replacing and renewing equipment, things can and frequently do descend into chaos. There isnt anyone in the organization with a handle on what IT equipment is being used and by whom. There is general confusion on what software is being used by who, and whether it has a license. The guys at the IT support line can’t deal with many of their queries efficiently due to lack of info on the specs of the caller’s machine. Operations for upgrading equipment or switching software platforms spiral into months of inefficiency.  Does this sound familiar? Well it’s surprisingly common in today’s organizations. Futhermore the expense associated with these issues can take a significant chunk out of your annual profits. 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 fact is you need to control IT assets or the costs associated with them can spiral out of control. The solution lies in a discipline known as fixed asset management. Fixed asset management for IT hardware and software basically falls into two distinct categories

Physical Assets. This basically means keeping track of all the IT Assets that exist in your 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 Asset Management. It is here where the big money can really be saved.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.

A lot of businesses are aware of these issues relating to their IT equipment. They just do not have a clear solution of how best to resolve them. The most common way of recording assets has been using a basic spreadsheet – yet these become a nightmare to keep track of and update as they grow bigger. 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. Maybe the time has come for your company to lay down a little investment in this regard.

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