How asset discarding and selling can be profitable to your business Every business, organization and individual buys equipment, normally as an upgrade. Each purchase brings two responsibilities: 1. To dispose of any redundant IT Assets according to environmental regulations and other relevant laws, 2. To remove any data that may have been stored on that equipment to comply with the Data Protection Act as well as any other industry-specific legal requirements.
However, it is easier to buy assets, install them, train people to use them right than to plan its disposal. Hence, either this task is overlooked, or delayed or delegated. Organizations sometimes fail to notice that holding on to assets for years without disposal or write off, will cost them investment opportunity, borrowing costs, storage costs, and management costs. Asset discarding and selling is a mature decision that is a function of preventive maintenance system and asset tracking management. The first thing that companies must do in such a scenario is to assess their total liability. With a comprehensive reporting system, you can get full history for your transactions, check the status and conditions of the assets using pie-charts, and get the full count of the assets according to their status. Once complete asset discovery is done, companies must analyze the cost of not acting on it. They also need to analyze the depreciation value with time. Accordingly, an informed decision must be taken on ways to discard the assets. Asset maintenance plays a crucial role in this. It is easy to re-sell or discard a well-maintained equipment. An efficient system creates & tracks service & maintenance schedules, AMC contracts, EMIs. Also track returnable date for leased & rented assets or for assets assigned to someone else. If there is no resale value, it needs to be broken down and recycled. Zero per cent to landfill should be a given. This shows your commitment to the business as well as the environment. Hence, it is much more profitable for organizations to re-sell or discard unused assets than store them. With the help of an efficient Asset management software, it becomes easier to discard or sell assets from the dashboard asset list while defining your own reason for discarding of assets and linked assets get discarded automatically if the parent asset is discarded.