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

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HOW TO DECIDE BETWEEN AN INVENTORY MANAGEMENT
SYSTEM OR ASSET TRACKING SYSTEM
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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
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Well help you remove any confusion about whether
you need an inventory management system or an
asset tracking system
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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
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• 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
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• 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
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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

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• Sell and turn over your stock in the next 12
  months
• Any longer and theyre 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
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REAL-TIME INFORMATION
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• 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
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INVENTORY CONTROL
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• 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
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WORKFLOW EFFICIENCY
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• Time-saving shortcuts
• Automate calculations wherever possible

Welcome the automatic calculation of CBM
Importers will appreciate automatic tabulation of
customs, insurance and freight costs
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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
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STRAIGHT-LINE
SUM OF THE YEARS 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
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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

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Inventory management systems handle the goods
that you sell
Asset tracking systems manage the fixed assets
used to sell your goods
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MORE INFORMATION
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tory-management-system-vs-asset-tracking-system/