The Effects of Poor Asset Management on your Business
Poor asset management can cause a business to collapse. For small businesses, the cost associated with asset utilization presents a unique set of challenges which should be dealt with in order to increase asset performance, streamline operations and maximize profits. When a business invests a large amount of money in its assets, financial gains are dependent on the performance of these assets.
A study conducted by U.S small business administration shows obsolete inventory management is one of the reasons why businesses fail. Moreover, U.S small business administration also found out that around 46% of small businesses function without any sort of system to track their goods. Lack of a robust inventory tracking solution can lead a business to face asset shortages, misplacement of expensive equipment and ultimately financial loss. To avoid the fiasco of business mismanagement and get maximum return on your investment, tracking your equipment for optimal performance becomes inevitable.
Features of Equipment Tracking Software helpful in Profit Maximization
Being a small business, your goal is to operate in the most cost-effective way possible. A cloud-based tracking solution can help you implement an automated system in place as well as maximize profits. Finding the right software is not an easy task. Before we get into which software you can use, let’s look at some ways as to how equipment tracking software can help you cut down on costs and raise profits!
Keep track of your Equipment: Do it the right way
Not having the right inventory control and tracking system can lead to diminishing returns on your assets. Just imagine, you need a certain type of equipment for a task on a short notice, but there is one problem; you don’t know where it is. Another unfortunate possibility of poor inventory management is having to write off assets because either they are lost or stolen, also called ghost assets. This can lead to additional expenses to locate that item and can also put your business in a bad financial position.
Equipment tracking software allows you to track assets by location. This helps you avoid unnecessary costs associated with loss or misplacement of equipment. Adopting this practice can help you cut down on extra expenses and increase overall efficiency.
Replenish and Make Repairs on Time
Constantly having to deal with broken equipment and poor management routines can put your business in a difficult financial position in the long run. Not only does this damage the equipment permanently and shorten its lifespan, but also increases the costs incurred to replace broken equipment. Similar is the case when it comes to shortages. Being unable to meet equipment shortages on time can cause hurdles in business workflow and create an unproductive work environment.
Automated asset tracking system lets you send out maintenance alerts to take care of your equipment on time. Properly maintained equipment not only gives better performance in the long run but also helps you defeat extra costs associated with unpredicted equipment downtime. When you need replacement of a certain equipment, purchase orders will be created as soon as you reach minimum stock levels. Replenishment on time creates economies of scale and gives a greater return on investment.
Create Reports to Analyze Revenue and Expenses
The simple rule to make profit is to maximize your revenue and minimize your expenses. This is not as easy as it seems. But the right management techniques can help your business maximize revenue in a smart way. On a more positive note, equipment tracking software gives you the opportunity to create custom reports as suited to your needs! When it comes to increasing efficiency, detailed reporting can play a vital role in determining the financial lifecycle of a business.
For effective equipment management, it’s pivotal to maintain productivity reports of all assets. These reports prepare a cost benefit analysis for your business. Based on this analysis, it becomes easier for you to decide which assets are worth the further investment and which piece of equipment is a burden on your financial balance sheet. Automated reportability helps you make better-informed decisions and shape your work environment to reach higher levels of efficiency.
Why is it a Good Idea to Invest in a Good Equipment Tracking Software?
Here are a few ways through which an equipment tracking software can help your business become more productive and streamlined:
- Revenue maximization by adopting cost-effective equipment management techniques.
- Easily available key metrics for analysis of asset usage and to comprehend business performance
- Improved Data security through a robust inventory management system and hassle-free accessibility for everyone in your business.
- Enhanced operational efficiency through work order management
- Improved workplace productivity through predefined user roles and tracking enabled check ins/outs.
- Reduced damage costs and disaster prevention by recording your equipment’s condition and scheduling regular maintenance regimes.
Choosing the right software for Profit Maximization and Equipment Management
Integrating an equipment tracking software into the workplace can be a tough job for a small business. To survive in a competitive environment, every business should understand its needs and the sort of inventory control system which will benefit the business the most. As a small business owner, you must be aware of the fact that poor inventory management can break your financial records in no time. Not having extra budget to spare, this presents a critical situation for you to handle in the best way possible.
Equipment tracking software caters to small business needs and helps manage assets and inventory best suited to your budget requirements. By keeping track of all your assets, you can stay clear of theft, loss and misplacement. Moreover, features like maintenance alerts and email notifications help you keep your equipment in good shape and prolongs its use. Instant reports and customization for your business provide you a clear analysis of all the costs associated with your equipment. Improved efficiency, reduced repair costs and increased productivity will ultimately lead to profit maximization for your small business!
Have Questions about our Equipment Tracking Software?
EZOfficeInventory is the leading equipment tracking software used by SMBs and enterprises all around the world. Track and manage your equipment effortlessly. Sign up today for our 15-day free trial and start improving your company’s inventory management.