How Controlling your IT Assets Can Save You Money
The usage of IT and computers in the workplace has rocketed in the last decade.You can’t find a single department in an organization these days that doesn’t depend on computers to work. In fact, computer usage has been at the centre of the success of many businesses and organizations, large and small.
What comes hand in hand with this reliance on computing is a fundamental dependence on the IT infrastructure sitting behind it. This could mean anything from computer hardware, keyboards and mice, software, monitors and more specialized hardware. Just in the United States this amount is in the $trillions.
However keeping track of IT assets can be pretty difficult, especially in large organizations. If you lack the proper control and strategic overview on when and how to replace and renew outdated equipment it often has rather chaotic ramifications. 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 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? The truth is that most organizations today face exactly this problem. 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 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 Asset Management. Essentially this is all about keeping a record of the IT equipment, hardware and software existing in the company or organization. This comprises information on inventory, as well as where and how each item is used. 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 the really big cost savings can be achieved. Once you know exactly what equipment your organization is using, you can then calculate the level of capital depreciation. 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. The question for most is how to go about fixing a typically complex problem. Traditionally spreadsheets are used to try and keep track of assets but these can become unwieldy and are very inflexible and time intensive. 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.