Posts tagged "business accounting"

Why Businesses Looking to Go Green Need to Heed Importance of Fixed Asset Management

Despite the still parlous state of the world and the UK economy in particular, the pressure on business to be “seen to be more green” continues to grow.Climate change policies and carbon taxes will inevitably become more significant mechanisms to raise revenues and be seen to be addressing global warming.  Part of that trend will be an increasing emphasis on enforcing regulations governing the collection, treatment and recycling of all sorts of waste, especially electrical and electronic equipment as specified by the WEEE directive.

Despite (or maybe because of) the recession, companies need to forge ahead with energy-saving measures and invest in the latest inventory management software, not least because of imminent UK mandatory carbon reduction commitments, and still have to prove their green credentials to consumers and clients who are increasingly demanding that  environmental  component of virtually every product or service.

Doing all this will create a significant cost for business, unless they get their fixed asset register in order.The days have gone when a simple aspirational statement about green strategies from procurement and recycling would suffice.Organisations now have to demonstrate their commitment to green issues through information transparency and fully auditable policies.At the core of this approach has to be consistent and detailed information about the life cycle of all fixed assets, from country of origin to final disposal details.

That requires an investment in asset management software to replace antiquated spreadsheet models in an attempt to accurately identify the location of equipment, especially that relevant to WEEE regulations, confirm when those items were purchased, from whom they were purchased, and how or where they were disposed of at the end of their lives.   By using a comprehensive asset accounting software package that links the asset register to a document management system, companies can create the required audit trail  as well as gaining valuable insight  into the disposition of their own assets so that they can adapt effectively to the demands of the green economy.