Top Benefits of Implementing Fixed Asset Management Modules in NetSuite

NetSuite is a comprehensive business management platform and allows most businesses to migrate a number of disparate software applications and spreadsheets into a single source of truth to manage every aspect of their business. However, in reality not all businesses who upgrade to NetSuite manage to achieve this during their first round of implementation. Many areas of the system are deprioritised during the implementation with a view to revisiting this functionality in future phases of implementation. 

One of the most common examples of this is Fixed Asset Management. Unless FAM is mission critical, the majority of businesses push this module to future phases in order to simplify and streamline their go-live. 

There are also many options when it comes to the level of complexity or sophistication of managing assets in NetSuite. In this article we will explore these options and explain the overarching benefits of bringing your Fixed Asset Management onto NetSuite. 

Asset Tracking or Asset Management?

The level of complexity when it comes to fixed asset management greatly differs between businesses. A business's primary industry of operation is a good indicator of how important fixed asset management will be for their business, however there are always exceptions to the rule.

Almost all businesses would benefit from using NetSuite’s custom records to create a Fixed Asset Register without having to invest in more advanced modules, such as NetAsset by NetGain. At a high level, you are able to create a custom record for assets, and create custom fields on this record to capture and record details around your assets. Common examples of these are asset names, types, depreciation methods, location, serial numbers, acquisition dates, resource assignments etc. This allows NetSuite users to more easily manage their asset tracking, however there are limitations to this approach when it comes to creating transactions based on fixed asset record information.

Pros of a Custom Fixed Asset Record 

1. No ongoing cost 
2. Flexible in design to capture any asset related data
3. Easy to implement
4. Some cross department reporting available.

Cons

1. Depreciation calculation and journaling is still a manual process
2. No ability to manage operational impacts of acquisition and disposal
3. Limited ability to track more advanced FAM information such as loans, leases or maintenance plans. 
4. Limited profit/loss reporting at the asset level

Whilst the Fixed Asset Register approach will still benefit a large number of NetSuite customers, many clients will require a more advanced Fixed Asset Management modules to automate and streamline the full lifecycle and operational & accounting impacts of asset management. 

Advanced Fixed Asset Management for NetSuite

TeamBlueSky have partnered with Netgain and helped a number of Australian customers to gain access to advanced FAM functionality through their Built for NetSuite Native Module, NetAsset. 

NetGain injects a full suite of Fixed Asset Management records and features in order to streamline and automate the full lifecycle of managing an asset, from asset requisition, through to purchase, monthly depreciation management, loans and leases, maintenance plans and records, asset compounding and splitting, asset build up and disposal and transfers. 

For businesses that either have a large number of assets, are managing different depreciation methods and are wanting to automate journals, transfer assets between companies, do project based asset builds or are wanting to fully automate this part of their business, then NetAsset is comprehensive to meet your needs.

Pros of NetAsset by Netgain 

1. End to end FAM solution built on platform.
2. Full integration to other NetSuite modules that are impacted by FAM such as AR, AP and GL, Work Orders and WIP Accounting. 
3. Fully automated depreciation journal creation, approval and posting. 
4. Granular detail on the fixed asset register 
5. Quick access to related records such as vendor bills, maintenance checklists and depreciation history. 

What are the benefits of implementing Advanced Fixed Asset Management in NetSuite?

Most NetSuite customers have the goal of bringing all legacy systems into NetSuite as a single source of truth at some point. From a systems perspective, implementing FAM on NetSuite is another area of the business that no longer lives in a silo, or worse, spreadsheets, meaning greater access to real time data, cross departmental reporting as well as being able to use NetSuite tools, such as approvals and workflows to control the operational and accounting impacts of fixed assets in your business. 

However, outside of the system, our customers report other key benefits that relate to increase in profitability, better decision making ability and even increased customer satisfaction levels. 

Fewer Customer Complaints

In businesses where assets play a large role in being able to service your clients, having an effective asset management plan and procedure in place is imperative. Being able to see in real time the location and utilisation of your assets means your people will be able to better support your customers and minimise confusion and errors that come with tracking assets in a separate system. 

Increased Asset Utilisation Leading to Higher Profits

Generally speaking assets have both fixed and variable costs depending on their usage or allocation to a project/customer. However, Fixed Assets also have a cost, when not being used and having visibility of this can help make better decisions when it comes to acquisition, allocation and disposal. Linking your fixed assets to your core business management platform makes it possible to gain these insights instantly through dashboards, saved searches and reports which means your asset management strategy can be aligned with the rest of your businesses operations. 

Keeping on Top of Compliance and Maintenance

Depending on the type of asset, you may need to proactively manage both compliance related tasks as well as routine maintenance in order to keep your assets working in optimal condition, and ensure that there are minimised down times when an asset needs repair. Having this strategically managed in NetSuite means you will be able to intelligently manage this data input, and in many cases automate it as other records in NetSuite such as work orders contain valuable information such as machine hours. When properly linked to the asset, this data can be used to update the fixed asset record and drive maintenance requests.

Reduced Loss & Theft 

When you are using Fixed Asset Management as well as NetSuite for Employee and HR related records, you are able to assign any of the assets to a specific employee or contractor. By implementing controls around this process you will be able to more easily see who has taken responsibility for assets, where they are located which in turn decreases the chances of accidental loss or theft.

TeamBlueSky and Netgain 

TeamBlueSky are proud to be the preferred partner for NetGain in Australia. We have helped a number of companies to enhance their use of NetSuite by implementing NetAsset after go live, which is a step closer to single system nirvana. If you are an existing NetSuite client and feel your business could benefit from implementing either a Fixed Asset Register, or a more advanced Fixed Asset Management solution then feel free to reach out for an obligation free conversation. Contact us at hello”teambluesky.com.au or on 1300 174 382. We are here to help.