The Ultimate Guide to Fixed Asset Management in 2024

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Isometric illustration of a modern office engaged in fixed asset accounting with digital asset tags, depreciation charts, and maintenance activities.

In the fast-evolving business landscape of 2024, managing fixed assets has become more critical than ever. This guide simplifies the concepts of fixed asset management and fixed asset accounting, making them accessible to everyone. Whether you’re a seasoned professional or just starting, the key to mastering fixed assets lies in understanding their fundamental nature and leveraging the right tools to manage them effectively.

Understanding Fixed Assets

At their core, fixed assets are long-term tangible pieces of property or equipment a company uses to generate income. These assets are not expected to be converted into cash within a year, which is a characteristic that defines them. Fixed assets are ordinarily presented on the balance sheet. Their valuation reflects the business’s investment in assets that contribute to its revenue-generating activities.

The Role of Fixed Asset Accounting

Fixed asset accounting is tracking the purchase, use, and eventual disposal of fixed assets. This practice ensures accurate financial reporting, tax computation, and business valuation. It’s the backbone of financial integrity for businesses, big and small.

The Importance of Fixed Asset Management

Effective management of fixed assets can lead to significant cost savings, operational efficiency, and compliance with financial regulations. It involves tasks such as asset tagging, depreciation calculation, and maintenance scheduling.
In this context, the role of specialized financial service providers like Hundred MS becomes invaluable. Hundred MS’s Approach to Fixed Asset Management can be presented in the following points

  • Asset Tagging and Tracking։ With Hundred MS, asset tagging and tracking become streamlined and accurate. 
  • Depreciation Calculation։ Depreciation calculation is a critical aspect of fixed asset management that directly impacts a company’s financial statements. Hundred MS employs sophisticated models to calculate depreciation, considering various factors accurately.
  • Maintenance Scheduling։ Hundred MS’s maintenance scheduling services ensure that your assets are maintained timely, reducing downtime and costly emergency repairs.

It’s also important to speak about the value Hundred MS Brings:

  • Cost Savings։ By optimizing fixed asset management processes, Hundred MS helps businesses realize substantial cost savings. Efficient asset management reduces unnecessary purchases, lowers insurance costs, and minimizes taxes through accurate depreciation calculations.

  • Operational Efficiency։ Hundred MS’s services streamline asset management workflows, freeing up valuable resources and time. This efficiency boost allows businesses to focus on their core activities, driving growth and innovation.

  • Regulatory Compliance։ Staying compliant with ever-changing financial regulations is a challenge for many businesses. Hundred MS stays abreast of the latest regulations, ensuring that your asset management practices are fully compliant, thus avoiding costly penalties and legal issues.

  • Strategic Decision Making։ With accurate and up-to-date asset information provided by Hundred MS, businesses can make informed strategic decisions. Whether it’s about asset acquisition, disposal, or reallocation, having reliable data at your fingertips is a game-changer.

Navigating Fixed Asset Management with NetSuite

NetSuite, a comprehensive business management suite, offers robust solutions for fixed asset accounting. The NetSuite Fixed Asset Management module simplifies complex processes, from tracking asset lifecycles to calculating depreciation.

Key Features of NetSuite Fixed Asset Management

NetSuite’s fixed asset management capabilities stand out for their ease of use and comprehensive features. They offer robust features to streamline and optimize asset management processes. Here’s a condensed overview:

  • Lifecycle Tracking: Track and manage assets from acquisition through depreciation to disposal.
  • Automated Depreciation: Automate depreciation calculations with support for various methods.
  • Detailed Records: Maintain comprehensive records for each asset, including purchase details and costs.
  • Custom Categories: Organize assets into customizable categories for better management.
  • Maintenance Scheduling: Schedule regular maintenance to extend asset lifespan and reduce downtime.
  • Reporting and Analytics: Access insightful reports for informed decision-making and strategic planning.
  • Asset Revaluation: Adjust asset values for market changes or impairments.
  • Financial Integration: Seamlessly integrate with core financial systems for accurate financial reporting.
  • Global Compliance: Ensure compliance with international accounting standards like GAAP and IFRS.
  • Customizable and Scalable: Tailor the system to specific needs and easily scale as your business grows.

Preparing a Fixed Asset Schedule

Creating a fixed asset schedule is a pivotal task for effective financial management. Here’s a straightforward guide to preparing one:

  1. List Your Fixed Assets: Begin by listing all your fixed assets. Include everything from office equipment to vehicles and buildings.
  2. Record Original Costs: For each asset, note its original purchase price. Include all costs involved in making the asset ready for use, such as installation fees.
  3. Track Accumulated Depreciation: Calculate the depreciation for each asset up to the current date. Use your chosen depreciation method, such as straight-line or declining balance.
  4. Determine Book Value: Subtract the accumulated depreciation from the original cost for each asset. This gives you the book value, representing the asset’s current value on your balance sheet.
  5. Update Regularly: Your fixed asset schedule should be a living document. Update it regularly to reflect new acquisitions, disposals, and depreciation adjustments.
  6. Use Software: Consider using NetSuite Accounting Software for accuracy and efficiency. NetSuite’s tools can automate many of the steps involved, reducing the potential for error.
  7. Review with Stakeholders: Share the schedule with relevant stakeholders, such as your finance team and auditors, to ensure accuracy and compliance.

By following these steps, you can create a comprehensive fixed asset schedule that supports informed decision-making and complies with accounting standards.

The Evolving Landscape of Fixed Assets Management

As we move further into 2024, the importance of leveraging technology in managing fixed assets cannot be overstated. Solutions like NetSuite are at the forefront, offering agility and accuracy in asset management.

Conclusion

In the dynamic world of 2024, mastering fixed asset management is indispensable for businesses aiming for growth and sustainability. With the right tools and understanding, managing these assets becomes a necessity and a strategic advantage. Solutions like NetSuite are at the forefront, offering agility and accuracy in asset management.

With well-prepared fixed asset management, you’re not just complying with accounting standards; you’re laying the groundwork for strategic financial planning and analysis. 

And always remember, Hundred MS is always here to help you grow. Whether it’s optimizing your fixed asset management or navigating complex financial landscapes, our expertise is designed to support your journey toward sustainable growth.

Nare Khachatryan

Nare Khachatryan

Business Analyst at Hundred MS

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Narek Abgaryan
Narek is the CEO and co-founder of Hundred MS. With a dynamic career that spans investment firms, asset management, risk management, and corporate finance, Narek has demonstrated a profound ability to navigate and innovate within the financial sector. His work across various countries and in diverse financial domains reflects a global perspective and an adaptable, forward-thinking approach. He Brings a wealth of knowledge and experience from the worlds of finance and technology. As a distinguished graduate of the University of Oxford and Hult International Business School, Narek has earned a reputation for excellence in the financial domain. His credentials, including the esteemed CFA and FRM certifications, are a testament to his deep understanding and expertise.
CFA, FRM
Narek Abgaryan
CFA, FRM, Fund Manager & CEO
Narek is the CEO of Hundred CJSC. Before embarking upon this position, he accumulated 7+ years of multinational experience including the positions of CEO, Head of Research and Member of the Board at various licensed and regulated investment companies. Narek is a graduate of Hult International Business School, Armenian State University of Economics and is currently pursuing his education at Saïd Business School of the University of Oxford. Narek is a CFA charter holder and a certified FRM.
Our Mission
Our mission is to extend our partner-based, specialized and cost-effective cooperation to our clients to enable them to focus on their long-term strategy and leverage their core competencies around value-creating activities, thereby boosting Armenia’s economic development.
Our Vision
We have a deep conviction that the financial system is the pillar of our civilizations. Economies that are exploding with growth are the ones that adopted modern finance. We aim to reach a reality where access to unconventional finance technics should be within reach of every economic unit. This shall empower everyone to allocate their human and financial capital more purposefully and innovatively for the benefit of a secure, wealthy, and responsible society.
Objectives
In "Hundred" CJSC, we are structuring our goals to revolve around the best interests of our investors and business partners. The basis we build our strategy on is satisfaction of expectations of our Clients, by bringing substantial profits to them through ethical management of investments, assets and portfolios. In the path of achieving the set tasks, we target new financial products adapted to the Client’s needs and offer variety combinations of interdisciplinary innovations. Following our set of values, we see our short-term goal in becoming one of the leading players in the domestic market, pursuing the long-term ambitious goal of integration into regional and global financial markets.
Corporate Values
We believe that earning the trust of each Client cements the next layer of the foundation of the Company’s reputation. Financial relations are built on trust; thus, our reputation is the heart of our business. Our allocentric approach to dealing with clients ensures that we always put their interests first. We do our utmost to make sure that our decisions are utterly disconnected from the greed when it comes to rendering our services. Promulgating ethics and adhering to the highest professional standards are the bedrocks of our corporate values.
  • Are your financial records more puzzling than they should be?
  • Has the audit process become a recurring nightmare for your firm?
  • Do important financial decisions stall due to unclear or absent financial reports?
  • Are high operational costs without clear returns keeping you awake at night?
  • Is hiring and maintaining a full-fledged financial team putting a strain on your resources?
  • Are you in the dark about your company's true valuation and need clarity?
  • Is the challenge of cleaning up your accounting books holding your business back?
  • Are outdated systems causing inefficiencies, prompting the need for an ERP implementation?
  • Have you identified the need for a robust risk management strategy but don't know where to start?
  • Are you looking for a one-stop firm that can handle everything from corporate strategy to asset management?
Are You Ready to Transform Your Businesses’ Financial Landscape?
Are You Ready to Transform Your Businesses’ Financial Landscape?
  • Are your financial records more puzzling than they should be?
  • Has the audit process become a recurring nightmare for your firm?
  • Do important financial decisions stall due to unclear or absent financial reports?
  • Are high operational costs without clear returns keeping you awake at night?
  • Is hiring and maintaining a full-fledged financial team putting a strain on your resources?
  • Are you in the dark about your company's true valuation and need clarity?
  • Is the challenge of cleaning up your accounting books holding your business back?
  • Are outdated systems causing inefficiencies, prompting the need for an ERP implementation?
  • Have you identified the need for a robust risk management strategy but don't know where to start?
  • Are you looking for a one-stop firm that can handle everything from corporate strategy to asset management?
Levon Garibyan
Levon, the co-founder and Business Development Director of Hundred MS, brings over a decade of international experience to his role. His career spans managing private firms with diverse business profiles across the UK, UAE, and Russian Federation. Levon has not only excelled in steering these companies towards growth but has also specialized in business development strategy and fundraising. His expertise in these areas has significantly contributed to the expansion and success of these firms. Levon's academic background is equally impressive, having studied at Cranfield University School of Management and Moscow State University of International Affairs (MGIMO), where he honed his skills in business management and international affairs.
Levon Garibyan
Levon is the Business Development Director and Strategy Specialist of the company. He acquired international experience of more than 10 years, managing private firms with various business profiles in UK, UAE and Russian Federation. Levon studied in Cranfield University School of Management and Moscow State University of International Affairs (MGIMO).
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David Tarkhanyan
David is the co-founder of Hundred MS and the CEO of Hundred MS GmbH. His track record in delivering innovative financial solutions and driving performance improvement initiatives showcases his ability to lead complex projects and navigate the intricate world of finance. David's breadth of experience has equipped him with the unique ability to understand and address the multifaceted challenges businesses face today. His exceptional qualifications, marked by the CFA and FRM certifications, reflect his deep commitment to financial mastery and strategic insight. David's career is characterized by a wide-ranging experience in investment banking, performance management, controlling, and reporting, among other critical financial domains.
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David is the co-founder of Hundred MS. He is a Banking specialist with a focus on Financial Controlling, Planning, and Performance Management. His experience extends more than 10 years in various investment banks in Vienna and Frankfurt. David studied Physics at Bauman University and Industrial Engineering at the American University of Armenia.