Fixed Asset Management and Enterprise Asset Management – Key Differences
The eQuip! software is an Enterprise Asset Management Operational Platform to support the management of physical assets. This category of software is called “Enterprise Asset Management”. Sometimes, people confuse “Enterprise Asset Management” for “Fixed Asset Management”. There are key differences between the two:
- “Enterprise Asset Management” is an operational function, while “Fixed Asset Management” is a finance function
- “Enterprise Asset Management” tracks the financial, physical and contractual information of assets throughout the life cycle, while “Fixed Asset Management” tracks the costs, depreciation, and residual value of the assets before they are retired.
As a result, there are things that Fixed Asset Management software are not able to support:
- Fixed Asset Management software can’t track the assets. Tracking assets requires having the updated information about where the assets are, when they are moved, who has custody of these assets at any given point of time. Fixed Asset Management software typically is maintained by the Finance department, and the users of assets are distributed across the organization. Unless these users constantly feed the Finance team about the usage information, the asset data in the Fixed Asset Management software is not updated.
- Fixed Asset Management software doesn’t support the workflows in life cycle managements of assets. Workflows are built in the Enterprise Asset Management system to support repeatable business processes and rules, such as asset entry, asset move, and asset retirement. These workflows help organizations to implement standard policies and procedures, and reduce risks.
For most small to mid sized companies, they should assess the functions in their Fixed Asset Management software, and determine whether they are sufficient for managing assets. We have prepared a short white paper to assist this assessment. You can download the white paper here.
If you want to find out more about why the eQuip! Enterprise Asset Management software can potentially replace the Fixed Asset Management software, and also provide additional functionality, please email us at email@example.com.