For companies that don't have the budget or the patience to leverage technology, there are several quick fixes available for the fixed-asset management process. Establishing one approval hierarchy for capital appropriation requests. Simplifying the approval process for asset transfers. Establishing a companywide surplus asset list. Laying the Groundwork One of the first aspects of fixed-asset management that consultants suggest is benchmarking the capital appropriations request process.
Some companies take as long as four months to approve capital expenditures.
Even more mind-boggling is that such expenditures often were approved during the capital budgeting process. Among the best practices recommended by The Hackett Group for the fixed-asset management process is the inclusion of a project tracking system to assist in the accumulation of costs and the simplification of the setup of assets once they're put into service. The same is true if you ask a company how much has been ordered and not delivered. A good project tracking system will accumulate all the costs and expenses associated with the implementation of a physical asset. I've gotten quite a few compliments on the quality and detail of the data that's available for the auditors compared to what was available before.