Keep Track of Your It Assets

The frequency of software audits is bound to increase as more emphasis is placed on managing software licences on the asset register to comply with SIRB Crackdowns and Federation Against Software Theft (FAST) legislation.A central register that records the serial number and asset location as well as the value of each IT item is necessary, provided you wish to avoid your directors incurring a ten year jail term, the maximum penalty for illegal software use.  Aside from  that , it’s probably well worth maintaining that central register for reasons of increased business efficiency and overall economy and the ability to  provide detailed  information that can inform  management decisions about  the disposition of resources.

A fixed asset register is fundamental to addressing all these issues and is also an essential business process.   Asset management determines corporate value and has direct impact on the bottom line.  Inventory management software can record serial numbers and asset locations as well as individual asset values to a level that satisfies the requirements of a finance department and provides the detailed information required to track those IT Assets.This is not just an esoteric accounting issue pertinent only to the heady complexities of finance teams.  Should the company suffer a disaster such as flood or fire,  insurance cover will hopefully get the organisation back up and running as soon as possible, including the replacement of valuable and business-vital IT systems.Any inconsistency between the asset register held centrally in finance and other inventory records will raise questions in the insurer’s mind that could delay pay out at best or result in no compensation payment at worst.

State of the art fixed asset software is therefore an essential part of a centralised asset register.  Business cannot now afford to rely on piecemeal policies and inadequate asset information otherwise they are leaving a gaping hole in their corporate value and exposing themselves to potentially costly liabilities.Only through the implementation of rigorous asset acquisition and disposal policies and recording detailed information about all the company’s hardware and software assets can an organisation hope to have full control over those fixed assets and understand its true business value.

Leave a Comment

Previous post:

Next post: