You finally feel like things are running smoothly. Maybe you are effectively tracking and maintaining your assets. If, however, you are not able to easily report on maintenance costs AND depreciated equipment values, you could be missing out on some insightful information. Don’t discount the importance of tracking and reporting on asset depreciation directly within your maintenance program.
- Assets enter the workforce just as we do. And similarly, asset depreciation begins producing income when it enters the workforce (e.g. buildings, equipment, vehicles, furniture, software, and more).
- Once you recover the cost of the asset, its depreciation expense stops. Therefore, profitability increases when the asset life extends beyond this point (if maintained properly).
- The depreciation schedule allows you to see the asset’s value over time. And then use this information to compare asset maintenance expenses vs. depreciated value vs. the cost of purchase.
- Accurately determining the value of your assets by reporting on depreciation should be a priority.
The Reasons You Should be Tracking Asset Depreciation with a Maintenance Program:
- Always have up to date asset information.
- Determine disposal time by monitoring asset maturity. And as a result, reduce the risk of unplanned equipment failure.
- Plan and budget with accurate financial asset information just a click away.
- Make better financial decisions that can save money.
- Properly tracked asset depreciation improves the accuracy of your financial records and helps you stay in compliance with audit requirements.
- Avoid overstating asset expenses that lead to inaccurate financial information.
- Accurately report on the actual depreciated value not just the purchase cost of your assets.
Many maintenance programs do not track the value of your assets. There is a great benefit, however, in having maintenance costs AND depreciated asset values in the same program. This helps maintenance staff make better repair vs. replacement decisions. In fact, you can track both with the simple and easy to use Novo ShareNet Maintenance Program. The built-in flexibility allows you to tailor it to fit your specific needs and transform your organization.