Does it still make sense to manually account for, track and manage fixed assets? Well, frequently conducting an enterprise asset inventory and tagging is mandatory. However, manually collecting and reporting data on fixed asset existence using barcodes and spreadsheets can be automated to RFID Tracking.
What is RFID technology?
RFID is a wireless technology that utilizes radio waves to automatically identify and track objects or assets. It consists of tags or labels attached to items, which contain electronically stored information. These tags can be read remotely by RFID readers or scanners, allowing for seamless and real-time data collection.
How does RFID Technology Helps Speeding up Data Collection?
As previously mentioned, RFID technology is a powerful tool for accelerating data collection in various industries. It involves the use of small electronic tags or labels embedded with unique identifiers and an integrated circuit that communicates with RFID readers through radio waves. Here’s how RFID can speed up data collection:
- Automatic and Contactless Scanning:
- Unlike traditional barcode scanning, RFID allows for automatic and contactless data capture. Multiple RFID tags can be read simultaneously within a designated range, enabling rapid scanning of items in bulk. This eliminates the need for manual scanning of individual items, resulting in significant time savings and increased efficiency.
- Real-Time Data Capture:
- RFID enables real-time data capture as items pass through RFID readers. Each tag contains specific information about the item, such as its identification, location, and other relevant details. As the tags are read, the data is instantly captured and transmitted to a centralized database or system, providing immediate visibility and access to up-to-date information.
- Increased Accuracy and Reliability:
- RFID technology minimizes human error and enhances data accuracy. Unlike manual data entry, which can be prone to mistakes, RFID eliminates the need for manual intervention. The automated nature of RFID ensures consistent and reliable data capture, reducing the chances of data discrepancies and improving the overall quality of collected information.
- Rapid Inventory Management:
- RFID enables fast and efficient inventory management. By attaching RFID tags to items, businesses can conduct inventory counts and updates in a fraction of the time required by manual methods. RFID readers can quickly scan a large number of items in a storage area, providing accurate inventory data without the need for time-consuming manual checks.
- Enhanced Tracking and Traceability:
- With RFID, tracking and tracing items throughout the supply chain becomes seamless and swift. Each RFID tag carries a unique identifier that can be associated with relevant information, such as manufacturing date, batch number, or expiry date. This enables precise tracking of items from production to distribution, allowing businesses to quickly locate specific products and manage recalls or product withdrawals efficiently.
Does it also helps with reconciling financial and accounting records?
The answer is yes! RFID technology can also aid in reconciling financial and accounting records. By incorporating RFID into the inventory management process, businesses can improve the accuracy of their financial records and streamline the reconciliation process.
Empower Finance Team
It is essential to support finance teams in their fixed asset auditing responsibilities and make their lives easier. While finance personnel must focus on the internal controls and finance planning, specific (administrative) tasks can be taken over by technology. RFID significantly reduces non-productive operations, especially for searching and matching for items in Fixed Asset Register. In addition, finance teams can account for, manage and track their fixed assets with real-time RFID data in ERP.In that case, you can check if any item movement and/or improper documentation occurred in minutes, instead of days and hours.
Where to start if you think RFID can help
Using RFID technology can help finance teams automate specific administrative tasks. By implementing RFID systems and utilizing real-time visibility, finance teams can ensure on-going tracking and compliance over their fixed asset records – on the financial records and their corresponding physical existence.
The most appropriate place to start is to reevaluate those business processes and internal controls you wish could be automated. By integrating RFIDs with ERP Systems, firms can track and scan their fixed assets faster and more accurately – while relying less on manual resources – to provide real-time data reconciliation.
Our Fixed Asset Advisory team has deep experience in reviewing and establishing fixed asset management and tracking programs using advanced technology (RFIDs) for internal controls and regulatory compliance.
Contact us today to learn more.