Even though there exist quite a number of advantages of using a spreadsheet, there are many disadvantages as well, that make its case weaker, especially when considering fixed asset management. There arises the million-dollar question,” who is the winner of Fixed Asset Management, Spreadsheet or Software?” Fixed asset management is not just limited to data and information. There are a lot of factors that affect it, and spreadsheets just don’t offer such intricate and detailed features. Thus a custom-built software, designed especially for this purpose, is required.
Here are 6 reasons, as to why software outweigh spreadsheets when it comes to fixed asset management:
1. Fixed Assets Require Very Precise And Detailed Records:
Fixed asset management needs to take into consideration many factors, then just plain data and information. Records related to the working condition of the asset, its disposal, retirement, etc., are some of the requirements that are not met by spreadsheets. Thus, a custom-build software would be a lot more efficient, and feasible to use, for such purposes.
2. Depreciation Calculation
In spreadsheets, calculation of depreciation is not feasible and accurate, as a lot of factors need to be considered, and it’s not just mere calculations. So, the software would be able to consider all the factors, and depreciation calculations would be a lot more precise, leading to proper disposal of assets, assessment of their scrap value, and working life, of the asset. Along with depreciation, the calculation of fair market value for the asset would also be a lot easier.
In software, we can use bar codes, and tags, to track the records, of a particular asset, that can linked to a database, which would be a lot more feasible, than maintaining extensive spreadsheets, which is very tedious.
If there are any updates to be made, for spreadsheets, it would be very difficult, as they need to be updated manually.
4. Security And Audit Trail
For spreadsheets, ensuring data security and audit trail, is not possible, as spreadsheets may be accessed very easily, leading to infringement of confidential and copyrighted data. This might lead to huge losses to the business.
So, using the software can ensure better safety measures and protection of data.
5. Linking Parent-child Assets, Conducting Split/Batch Disposals:
For spreadsheets, linking parent-child assets is not possible, as spreadsheets are based solely on data. Also, conducting split or batch disposals, is not possible, as well, as we cannot relate two or more different assets to each other.
So, using the software would be a lot more feasible and efficient, and would be able to carry out these operations, easily.
6. Historical Reporting And Forecasting
Reporting of historical data, maintaining previous data, and being able to present it, whenever required, as well as forecasting future conditions, etc are not possible in spreadsheets, whereas a software would have a linked database, that would be a lot more efficient and feasible. Due to the above-mentioned reasons, and requirements of fixed asset management, we can conclude that even though spreadsheets may provide an organized database, it has a lot more disadvantages, due to which, it is not quite suitable to use for fixed asset management.
We at, Egghead Consultants LLP, provide end-to-end 360-degree solutions for Fixed Asset Management and our services include:
BACK END SUPPORT
CWIP Monitoring & Capitalization • New Asset Capitalization & Depreciation Run • Accounting for disposal & retirement of assets • Audit Preparation & Support • Migration to ERP Platforms • SOP Design & Training • Investigation for unidentified assets and missing bills
Physical verification of assets. • Asset Tagging guideline (including asset image) • Design Asset Coding structure basis company requirement • Asset label recommendation basis asset type • Asset tagging owned / Third Party • FAR Compliance & certification • Fair Market Value (FMV)
SOFTWARE AND HARDWARE
Software for FAR & Barcode tag printing • Tag printing support for new capitalization • Hardware & Consumable support • Labels (RFID & Barcode) • Scanners (Handheld RFID, Barcode Reader & Fixed readers) • Printer