Are your equipment costs getting out of hand? In order to become more profitable, you need to reduce the costs incurred by the fixed assets (or equipment) your company has on hand. Many strategies exist to help businesses reduce fixed asset costs; however, many companies do not employ any of these strategies. Not implementing cost-saving measures is a detrimental mistake to make and can directly impact your company’s bottom line. In order to protect your profit and ensure that your fixed assets continue to support your operation, you need to implement effective strategies to reduce your fixed asset costs.
We’ve created a few tips to help you get started reducing your equipment costs:
- Use fixed asset software to schedule important equipment maintenance. Sage Fixed Assets tracks depreciation and can help your equipment function as effectively as possible. Coordinate your equipment maintenance with your depreciation schedules to ensure all equipment is inspected (and fixed) regularly. This will prevent small issues from becoming bigger (and costly) issues down the road.
- Go “green”. Is there an eco-friendly alternative to a piece of equipment your business uses on a regular basis? If so, it’s worth investigating. Sustainable solutions for equipment are not just good for the environment; they are also effective in reducing on-going equipment costs. While the upfront cost may be higher, the cost to run it is often less.
- Use updated equipment when possible. If you are able, you should be running the most up-to-date equipment possible. This may entail entering into an equipment lease that provides replacements as upgrades are available or purchasing new equipment on a regular basis. While it may seem unnecessary, updated equipment can prevent the costly issues that sometimes arise as equipment ages.
- Do more with less. Does your business really need all of the equipment you currently maintain? Is it possible to run your business without certain pieces of equipment? If so, consider selling extra equipment to increase cash flow and reduce costs. Track the utilization percentage of your equipment in Sage Fixed Assets to determine whether or not your equipment is necessary to the success of your business. If it’s not, get rid of it.
By implementing the above cost-saving tips, you can begin to reduce your equipment costs and better manage your fixed assets. Sage Fixed Assets can help you reduce these costs and effective manage your fixed assets throughout their life cycle. Contact us today to learn more about how Sage Fixed Assets can help you reduce your equipment costs.