How to decide between an inventory management system or asset tracking system

1. HOW TO DECIDE BETWEEN AN INVENTORY MANAGEMENT SYSTEM OR ASSET TRACKING SYSTEM

2. In our line of work we often get requests like I need an inventory management system for our tools I need to track our inventory of laptops and projectors

3. We’ll help you remove any confusion about whether you need an inventory management system or an asset tracking system

4. BOTH SIT ON YOUR BALANCE SHEET BOTH SIT ON YOUR BALANCE SHEET They differ in their impact on your bottom line and representation in your financial reports The software solutions are not interchangeable and they target different assets They affect your profit or loss, and thus taxable income YOU NEED TO REPORT ACCURATE INVENTORY FIGURES IMPORTANCE OF FIXED ASSETS VERSUS INVENTORY Not all assets are necessarily inventory

5.  Finished goods in your warehouse  Work-in-progress and raw materials Use inventory management systems to manage your inventory levels WHAT IS INVENTORY Inventory is the stuff that you sell to make a profit

6.  Property  Machinery and tools Use asset tracking systems to manage your fixed assets WHAT ARE FIXED ASSETS? Fixed assets are physical things used to purchase, produce and sell your inventory

7. CURRENT ASSETS FIXED ASSETS  Factory  Warehouse  Retail shop  Candy making machines  Furniture and fixtures  Office equipment  Delivery vehicles and forklifts  Cash in the bank  Finished sweets  Raw materials (sugar, cocoa, flavorings, coloring, etc)  Work-in-progress for large candy installations  Account receivables

8.  Sell and turn over your stock in the next 12 months  Any longer and they’re considered dead stock EMERGE App Managing your orders, purchases and inventory in your business ROLE OF INVENTORY MANAGEMENT SYSTEMS Main purpose of an inventory management system is to help you turn over your stock quickly

9. REAL-TIME INFORMATION 1  Inventory is updated continuously  Giving you real-time information  Now the available quantity  Physical quantity in your warehouse Modern inventory management software uses a perpetual inventory system Information empowers your salespeople in the field to sell better and faster

10. INVENTORY CONTROL 2  Buy too much of it and you risk tying up working capital  You face the possibility of losses from damage, theft and obsolescence Inventory, as a current asset, has considerable value in your business Inventory management system aims to help you achieve an optimal inventory level

11. WORKFLOW EFFICIENCY 3  Time-saving shortcuts  Automate calculations wherever possible Welcome the automatic calculation of CBM Importers will appreciate automatic tabulation of customs, insurance and freight costs

12. PURPOSE OF ASSET TRACKING SYSTEMS Your balance sheet shows fixed assets at their original cost Know their current market value and the amount they have depreciated by

13. STRAIGHT-LINE SUM OF THE YEAR’S DIGITS Simple calculation of the initial cost of an asset divided by its useful life An accelerated depreciation method that assumes the productivity of an asset drops over time Assumes that the fixed asset depreciates the most in the first few years of its useful life DOUBLE DECLINING BALANCE CALCULATE DEPRECIATION A typical asset management system uses various methods to calculate depreciation

14. SCHEDULE MAINTENANCE TRACK FIXED ASSETS  Asset management systems should track the users of assets using a register  Each fixed asset needs a serial number  You need to register each user in the system  A sign-out/sign-in process  Record and schedule maintenance for your fixed assets  Regular maintenance is advisable  The system should handle different needs for each one

15. Inventory management systems handle the goods that you sell Asset tracking systems manage the fixed assets used to sell your goods

16. MORE INFORMATION https://emergeapp.net/traditional- businesses/inventory-management-system-vs- asset-tracking-system/