Beyond the Balance Sheet: How Your Small Business Bookkeeper Can Provide Added Value through Asset Tracking

Asset Tracking is worth its weight in gold

Don’t Lose Money!

Did you know that businesses lose billions of dollars each year due to poor asset tracking? Whether you are using Accrual and Cash Accounting; misplaced equipment, inaccurate depreciation calculations, and even theft can significantly impact your bottom line. In this post, we'll explore how a small business bookkeeper can become your secret weapon in mastering asset tracking, ensuring you maximize the value of your investments and minimize potential losses. From establishing a comprehensive asset register to implementing cutting-edge tracking technology, we'll uncover the strategies that can transform this often-overlooked area into a source of efficiency and profitability.

Why Should You Track Assets?

Assets are the lifeblood of any business, representing the valuable resources that fuel operations and drive growth. From computers and equipment to vehicles and inventory, effectively tracking these assets is crucial for maximizing their value, minimizing losses, and ensuring accurate financial reporting. While asset tracking might seem like a tedious task, a skilled bookkeeper can transform it into a strategic advantage, providing valuable insights and contributing to your business's long-term success.

The Importance of Investing in Asset Tracking

An investment in accurate record-keeping, efficient tracking methods, and proactive management will maximize the value of your assets, minimize losses, and contribute to your business's long-term success.

But, Do You Really Need a Bookkeeper for Asset Tracking?

While implementing asset tracking systems might seem manageable, the truth is that it can quickly become complex and time-consuming. This is where a skilled bookkeeper becomes invaluable. Think of them as your asset management partner, bringing expertise and efficiency to a critical area of your business. Here is how a bookkeeper can help with asset tracking.

Establishing a Comprehensive Asset Register

A bookkeeper can help you create a comprehensive asset register, a centralized record of all your business assets. This register should include:

• Detailed descriptions: Include detailed descriptions of each asset, including make, model, serial number, and any other relevant identifying information.  

• Acquisition information: Record the date of acquisition, purchase price, and any associated costs, such as shipping or installation.  

• Depreciation schedules: Establish appropriate depreciation schedules for each asset, ensuring accurate reflection of their declining value over time.  

• Location tracking: Track the physical location of each asset, whether it's in the office, at a warehouse, or in the field, facilitating efficient management and retrieval.  

Implementing Effective Tracking Methods

A bookkeeper can help you implement effective asset tracking methods, tailored to your business needs and the types of assets you own. These methods might include:

• Barcode or QR code scanning: Utilize barcode or QR code scanning to quickly and accurately identify and track assets, especially for inventory management.  

• GPS tracking: Employ GPS tracking devices for valuable assets, such as vehicles or equipment, to monitor their location and movement in real-time.  

•  Cloud-based software: Utilize cloud-based asset tracking software to centralize data, automate tracking processes, and provide real-time access to asset information.  

Ensuring Accurate Depreciation Calculations

Depreciation is the gradual decrease in the value of an asset over time. A bookkeeper can ensure accurate depreciation calculations by:  

• Selecting appropriate depreciation methods: Choose the most appropriate depreciation method for each asset, considering factors such as its useful life and expected salvage value.

• Calculating depreciation expense: Accurately calculate depreciation expense for each accounting period, ensuring proper reflection of asset value on your financial statements.  

• Reconciling asset values: Regularly reconcile asset values with the depreciation schedule to ensure accuracy and identify any discrepancies.

Conducting Regular Physical Inventory Counts

Physical inventory counts involve physically verifying the existence and condition of your assets. A bookkeeper can assist with:  

• Planning and scheduling counts: Develop a schedule for regular physical inventory counts, considering factors such as the frequency of asset movement and the risk of loss or theft.

• Supervising count procedures: Ensure that inventory counts are conducted accurately and efficiently, minimizing disruptions to operations.

• Reconciling counts with records: Compare physical inventory counts with the asset register to identify any discrepancies, investigate potential causes, and update records accordingly.

Maximizing Asset Value and Minimizing Losses

Effective asset tracking can help you maximize the value of your assets and minimize losses due to theft, damage, or obsolescence. A bookkeeper can:  

• Identify underutilized assets: Analyze asset usage data to identify underutilized assets that could be sold, leased, or repurposed to maximize their value.  

• Implement preventive maintenance: Track maintenance schedules and ensure that assets receive regular maintenance to prevent breakdowns and extend their useful life.  

• Manage asset disposal: Properly record the disposal of assets, ensuring accurate accounting for any gains or losses and compliance with tax regulations.

Using a Skilled Bookkeeper Can Save You Time and Money

• Accuracy is Key: A bookkeeper's meticulous record-keeping ensures your asset register is always up-to-date and accurate. This minimizes errors that can lead to costly mistakes in depreciation calculations, financial reporting, and even tax filings.

• Efficiency Experts: Bookkeepers are masters of organization and process optimization. They can streamline your asset tracking procedures, freeing up your time to focus on core business activities.

• Tech-Savvy Navigators: Today's bookkeepers are proficient in various asset tracking software and technologies. They can help you choose and implement the right tools for your business, maximizing efficiency and minimizing manual effort.

• Compliance Guardians: Staying compliant with tax regulations and accounting standards is crucial when it comes to asset tracking. A knowledgeable bookkeeper ensures your records are audit-ready and help you avoid penalties.

Next Step: Find the Right Asset Tracking Bookkeeper for Your Small Business

When looking for a small business bookkeeper, don't just settle for an inexpensive bookkeeper, rather seek out a professional who will be a Financial Advocate for your business; one that has the following key skills and qualifications:

• Strong Accounting Fundamentals: A solid understanding of accounting principles and depreciation methods is essential.

• Asset Tracking Expertise: Look for experience with various tracking methods, including barcode scanning, GPS tracking, and asset management software.

• Software Proficiency: Ensure they are comfortable with accounting software, spreadsheet programs, and potentially industry-specific asset tracking tools.

• Attention to Detail: Meticulous record-keeping and accuracy are paramount in asset tracking.

• Excellent Communication Skills: They should be able to clearly explain complex information and provide valuable insights.

By partnering with a highly-skilled professional bookkeeper, you can transform asset tracking from a mundane task into a strategic advantage. Additionally, you gain a strategic partner who can help you maximize the value of your investments, minimize losses, and ensure long-term financial health.