Assets recorded in the company ledger but not physically accounted for are called ghost assets. This can include office laptops, construction tools, and heavy machinery that were purchased at a certain time but were forgotten and no longer contribute to your business.
However, most business owners and managers disregard the risks these neglected assets have on their business every day. While ignorance of the problem is evident, the time taken for manually auditing assets is also a major challenge. For small businesses, manual audit means allocating a significant amount of their workforce, resulting in stagnated productivity until it’s done and for large companies, an asset audit means covering thousands of assets, often leading to errors. This situation blindly pushes companies to ignore asset audits for longer time periods, thus contributing to the piling up of ghost assets. By the time you recognise the issues, insurance payments, taxes and audit exposure have already drained your revenue significantly.
Modern asset management solutions are built to solve these challenges with ease. They automate the lifecycle of the assets by tagging each asset at the moment of purchase with the usage of RFID technology and implement mobile audits which provides total visibility over every asset in your business. This crucial process of asset management provides the key solution to both small and larger companies since audits can be done by one individual with zero errors in minutes rather than days.
The immediate benefits of eliminating ghost assets using modern RFID asset management are reduced asset search time from days to seconds, increasing productivity and efficient allocation of labour. The benefits aren’t just limited to operations. By implementing RFID asset management, businesses can save on paying insurance premiums, property taxes on machinery and eliminate audit exposure, which significantly reduces the financial risk as well. Moreover, the total visibility and control of assets go beyond just visualizing all assets in a centralized dashboard to strategic decision making, which gives your business the competitive advantage you always needed. To eliminate financial and operational risks due to ghost assets, switch to RFID asset management today!
