Forecasting for Equipment Management
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Forecasting is a crucial, yet often overlooked aspect of fixed and mobile asset management. Traditionally, inventory audits are focused on what assets an organization currently has. However, the data generated by an effective inventory audit should be able to indicate an organization’s asset utilization habits.
Questions such as: which assets are used most often and where? Which assets are underutilized? Which employees use which assets and how often? Having a fixed asset management system that can provide insight into an organization’s asset usage allows that organization to make invaluable predictions towards future asset expenditures and usage. Consequently, forecasting becomes the logical next step in asset life cycle management.
To this end, fixed asset management software that assists with forecasting can allow organizations to quickly and easily create, analyze and store “what-if” scenarios for future capital asset decisions. This can be extremely helpful with annual forecasting requirements that your organization may have.
Fixed asset management software platforms that have a forecasting system included allows organizations to see the effects of asset depreciation changes, indexation, and capital charges or events entered against both individual assets and categories of assets in the register.
The depreciation forecast allows for asset acquisitions and disposals to be executed with confidence. Moreover, financial forecasts such as asset depreciation analyses can be conducted against groups of assets without requiring the user to specify precisely which assets will be affected. An example would be a user budgeting for the acquisition of a new piece of medical equipment within a specified accounting period. The effect on depreciation and capital charges will be associated with the appropriate asset type and a report produced based on that calculation.
Specialized forecasting systems will have the facility to carry out historical and current cost forecasting as well as forecasting by cost center/department. Accordingly, an effective forecasting tool should be able to:
- Accurately plan and forecast any range of future accounting periods or years.
- Produce precise budgets for the immediate future year and additional future years.
- Analyze the effect of depreciation charges against individual assets and asset groups.
- Record fixed and mobile asset acquisitions, disposals and revaluations by accounting period.
- Calculate multiple budget options to maximize expenditure decisions.
- Utilize live asset information with user-selected expenditure models.
- Store budgets as models for creation in future budgets.
- Enter future predictions for the system to run calculations on.
- Log-in with a valid username and password combination prior to accessing the database.
- Establish individual or group access rights for security purposes.