5 Most Common Asset Tracking Mistakes
Why Organizations Lose Track of Assets
Asset management seems simple - just list what you have. But in practice, organizations repeatedly make the same mistakes that lead to losses worth hundreds of thousands, audit problems and unnecessary stress. Over years of working with clients, we've identified 5 common mistakes we see again and again. Let's examine them and show how to avoid them.
How Much Do These Mistakes Cost?
- Average organization loses 3-5% of assets annually due to poor tracking
- Outdated records extend inventory time by 40-60%
- Missing documentation complicates 70% of insurance claims
1. Outdated Records
The most common and costly mistake is not updating records continuously. Assets are moved between departments, disposed of, lost or damaged - but remain unchanged in records. This creates a gap between reality and documentation that only deepens over time.
Consequence:
During inventory you discover differences of several percent. Assets worth tens of thousands are "somewhere" or "with someone". Audit reveals discrepancies that can't be explained. You unnecessarily buy things you already have - you just don't know where.
Real-world example:
A manufacturing company tracked 50 laptops, but physically found only 41 during inventory. Nine laptops worth $12,000 were "somewhere" - some left with former employees, some were disposed of without record.
How to fix it:
With a QR code system, every change is recorded instantly. Moving an asset? Scan, confirm new location. Disposal? Scan, document reason. Records are always current without extra work.
2. Missing Photo Documentation
Records without photos are like a detective story without evidence. You know "office desk, wooden" exists somewhere, but which of ten similar desks is it? In case of damage or theft, you can't prove original condition or value.
Consequence:
Insurance company rejects or reduces claim - you have no proof of asset condition. Employee claims monitor was damaged when they received it. You can't document defect for supplier warranty claim.
Real-world example:
A school reported theft of 15 projectors after break-in. Insurance required proof of condition and age. School only had a list without photos or invoices. Result: payout reduced by 60% due to insufficient documentation.
How to fix it:
When acquiring assets, photograph and attach to system. Takes 30 seconds, but in insurance claims or warranty disputes it can mean difference of thousands of dollars. Asset Manager software makes it easy to attach photos to each asset.
3. Undefined Responsibilities
"It's company property, no one is directly responsible." This approach is a recipe for losses and damage. When no specific person is responsible for specific assets, no one takes care of them. Result: lost tools, damaged equipment and items that "disappeared somewhere".
Consequence:
No one reports defects or damage - it's not their concern. Assets disappear and no one notices. During inventory, blame is sought but not found.
Real-world example:
IT department had 20 spare mice and keyboards "for everyone". Within a year, none remained. No one knew who took what, where they put it, whether they returned it. Annual restocking cost: $600.
How to fix it:
Assign each asset a responsible person and storage location. Employee signs for receipt, returns on departure. System always shows who is responsible for what and where it should be.
4. Excel as the Main Tool
Excel is great - for spreadsheets and calculations. For asset management it's a trap. Files get copied, different versions emerge, people work in different copies, no one knows which is current. Change history doesn't exist, user permissions can't be set.
Consequence:
Someone overwrites important data - and no one knows who or when. Accountant works with different version than building manager. File gets corrupted or lost - backup is six months old. Can't determine who made a change and why.
Real-world example:
Accountant and asset manager each had their own Excel version. At year end they discovered asset value differences of $35,000. Finding the cause took 3 weeks of two people's work.
How to fix it:
Specialized software offers one version of truth for everyone, automatic change history, user permissions and automatic backups. Investment in the right tool pays back in saved time and stress.
5. Postponing Inventory
Annual inventory before fiscal year-end is a recipe for problems. A lot happens in a year - and you discover it all at once at the worst possible time. Chaos, stress and pressure to quickly resolve the unresolvable.
Consequence:
Problems accumulate all year and explode before closing. No time for thorough investigation of differences. Errors get "covered up" instead of resolved. Next year is even worse.
Real-world example:
Company always did inventory in December. Same scenario every year: 3 days of chaos, overtime, differences worth hundreds of thousands that eventually "got resolved somehow" through accounting adjustments. No one knew if assets were truly lost or just poorly recorded.
How to fix it:
Continuous checking with QR codes spreads work throughout the year. Check portion of assets each month, resolve discrepancies immediately when they occur. Annual inventory then takes hours instead of days.
Quick Test: Are You Making These Mistakes?
Answer these questions honestly:
- 1.Do you know exactly where every asset in your organization is right now?
- 2.Do you have a current photo of every asset?
- 3.Is there a clearly defined responsible person for every asset?
- 4.Does everyone work with one version of records that's always current?
- 5.Do you check asset status continuously throughout the year, not just during annual inventory?
If you answered NO to any question, you're probably making one or more of the described mistakes.
How to Avoid Mistakes
The key is implementing a systematic process and using the right tools. It's not enough to just decide "we'll do better from now on". You need a system that supports correct behavior and makes incorrect behavior difficult.
Automate Routine Tasks
QR codes, automatic reminders and mobile access mean updating records takes seconds instead of minutes.
Set Clear Rules
Define who is responsible for what, how records are updated, when checks are performed.
Check Continuously
Small check every month is better than big panic at year end. Solve problems immediately when they occur.
Use the Right Tools
Specialized software minimizes human error risk and saves time. Investment pays back very quickly.
Conclusion
We see these 5 mistakes in most organizations that come to us for help with asset management. The good news is they're all fixable - and correcting them brings immediate savings in time, money and stress. Asset Manager is designed to help you manage records correctly from the start and avoid these common traps.
Don't Want to Make These Mistakes?
Try Asset Manager and see how easy proper tracking can be. We offer free consultation and demo version.
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