Introduction
Effective asset tracking is essential for modern businesses to operate efficiently. Whether you’re in finance, IT, administration or operations; tracking assets helps improve efficiency. Imagine knowing exactly where every asset is, in real time. From laptops to machinery, asset tracking and management ensures accurate record-keeping and control.
Picture finance departments easily auditing fixed assets and accurately calculating fixed asset depreciation. Envision IT managers monitoring the entire IT inventory lifecycle from purchase to retirement, with alerts for maintenance and upgrades.
This guide explores asset tracking and management in a practical, role-based manner. We’ll explain what asset tracking is, how it works, and why it’s essential for enterprises today. We’ll compare popular asset tracking software and technologies – from barcodes to RFID to GPS – and provide actionable insights backed by statistics. You’ll learn how effective tracking slashes downtime, prevents loss, and even boosts employee productivity. We’ve also included an FAQ section answering common questions like “What is asset tracking?”, “How much does asset tracking cost?”, and more.
Let’s dive in and see how an asset tracking program can transform your operations.
What is Asset Tracking?
Asset tracking is the process of monitoring physical assets using tags or labels—such as barcodes, RFID, or GPS tags. It helps companies identify, track, and manage assets while knowing where they are, how they’re used, and by whom. Tracking assets improves visibility, reduces manual errors, and helps prevent unnecessary loss.
Fixed asset tracking ensures accuracy across finance, IT, and operations. It plays a key role in both fixed asset management and IT asset tracking. Finance teams use it for compliance, depreciation, and audit readiness. IT teams rely on asset tracking to manage devices, software, and hardware lifecycles.
Asset Tracking vs. Inventory Tracking: It’s important to note the difference between asset tracking and inventory tracking. Inventory usually refers to items intended for sale or consumption (stock, supplies, raw materials), whereas assets are typically reusable valuable items owned by the company (equipment, machinery, IT devices, vehicles).
Whether you call it IT asset tracking, equipment tracking, or fixed asset tracking – they all refer to tracking different categories of assets. The goal is to gain visibility and control over assets to improve efficiency and reduce costs.
How Does Asset Tracking Work?
The traditional method of asset tracking using spreadsheets is slow, manual, and prone to human error. Modern asset tracking systems combine physical tags with asset tracking software for automation. Assets are tagged using barcodes, RFID, GPS, or other asset tracking tags and the tracking system helps update asset status and location automatically in real time.
The asset tracking software links each physical asset to its digital record. This keeps the asset database current with updated location, status and condition at any time. Asset Tracking using RFID technology works without direct line of sight, enabling faster audits. The result is a reliable, scalable, and efficient asset tracking solution.
Here’s a quick overview of how a typical asset tracking system works:
- Tagging Assets: First, each asset is labeled with a unique identifier. This could be a printed barcode label, a durable QR code sticker, or an electronic tag like an RFID chip or GPS tracker. These asset tracking tags carry information (or link to information) about the asset and link the physical asset with asset register.
Read More about Asset Tracking Tags and Factors while choosing the right tag for your organziation>> - Data Capture (Check-in/Check-out): Asset audit, transfer, retirement or maintenance transaction gets recorded through automated reading of the tag. For barcode/QR codes, staff might scan the code with a smartphone app. For RFID asset tracking, fixed scanners or handheld readers automatically detect tags via radio waves (no line-of-sight needed).
- Central Asset Database: The asset tracking software maintains a live database of assets with fields like current location, custodian, condition, status, etc. For example, an IT asset tracking system would list all computers, their assigned user, and warranty info.
- Real-Time Monitoring and Alerts: Managers and stakeholders can view dashboards and receive alerts from the system to monitor asset whereabouts and usage. As a result, this ensures immediate visibility into any unusual activity (which could indicate theft or misuse) and, furthermore, helps schedule timely maintenance.
- Reporting and Analytics: Over time, the software collects valuable data on asset utilization. Companies can analyze this data to spot trends – e.g., which assets are underutilized, how often tools are lost, or the average lifecycle of a type of equipment. These insights support data-driven decision making.
Asset Tracking Technologies and Solutions
Modern asset tracking makes use of several technologies, each with its own strengths. Choosing the right solution often means combining methods based on your needs. Here’s a look at the most common asset tracking technologies and systems:
- Barcode and QR Code Systems: The simplest and most widely used method is barcode labeling. Each asset gets a barcode or QR code label and information is recorded by scanning these codes.
To explore real-world use cases and benefits of using Barcode and QR Code for asset tracking, Read our detailed post on Barcode and QR Code Asset Tracking>> - RFID Asset Tracking: RFID (Radio Frequency Identification) uses small tags with microchips and antennas. Passive RFID tags have no battery and are activated by radio waves from a reader, which can pick up the tag’s ID wirelessly. Active RFID tags have their own power source and can broadcast signals over longer ranges.
Get to know in depth about RFID Asset Tracking in our Blog Post – “RFID Asset Tracking – Transforming Asset Management”>> - GPS Tracking: GPS trackers are devices that use satellite signals to determine location, commonly used for vehicles, heavy equipment, or other movable assets that travel over large areas. They often have cellular or satellite communication to report their position back to a software system.
- Bluetooth Low Energy (BLE) and IoT Sensors: An emerging category uses small BLE beacons or other IoT sensors (like LoRaWAN tags) attached to assets. These devices broadcast signals picked up by receivers (like smartphones or fixed gateways) to triangulate location or simply log presence.
- Asset Tracking Software (Platform): Alongside the physical tagging method, the asset tracking software itself is a crucial part of the solution. Modern asset tracking systems like AssetCues are typically cloud-based platforms with web and mobile apps. They often include features like:
- Central Asset Register: A database of all asset details (purchase date, value, location, etc.).
- Check-in/Check-out Management: Especially useful for tools or IT equipment that gets issued to employees. The software logs who has what and when it’s due back.
- Mobile-powered audits: Automation of audits using mobile application; thereby saving time, cost and efforts spent on manual physical verification.
- Analytics & Reporting: Generate reports on asset movements, availability, status and audit trails for compliance.
- Integration: Asset tracking solutions integrate with other enterprise systems like ERP, CMMS, or IT service management tools.
- User Permissions and Security: Control who can update asset info; use audit logs to see any changes (important for preventing tampering or errors).
Asset Tracking Technologies Comparison
Different asset tracking solutions leverage various technologies to locate assets. Each method has strengths and ideal use cases. The table below compares common asset tracking technologies:
| Technology | Description | Best Use Cases | Approximate Cost per Tag* |
| Barcode/QR | Barcode labels are affixed to assets and scanned by mobile device for audits. | General asset inventory and fixed asset tracking. | Very low (pennies per asset). |
| RFID | Radio-frequency identification tags (passive or active) are affixed on assets. | Rapid and automated scanning of assets is best for faster asset inventories and automation of movement recording. | Low (passive tags ~$1; active tags higher plus reader cost). |
| Bluetooth (BLE) | Battery-powered beacons transmitting short-range signals are affixed on assets. | Real-time indoor asset location. (RTLS) Eg. Tracking real-time location of equipment in the facility. | Moderate (~$5–$20 per tag, requires receivers). |
| GPS | GPS unit with cellular/SAT link on asset. | Tracking vehicles and movable assets across wide areas (Outdoors). | High (~$15–$200 per device + data plan). |
*Costs are approximate and vary by features and volume.
Barcodes require line-of-sight scanning but are simple and cheap. RFID asset tracking allows contactless, fast reads of multiple items and more durable tags. BLE tags offer longer battery life for indoor tracking, while GPS trackers provide global coverage and geofencing for fleet management. Companies often mix these asset tracking solutions to cover different needs.
Benefits of Asset Tracking
Effective asset tracking and management delivers key benefits across departments. It improves asset utilization, reduces loss, and supports better decision-making. By using an asset tracking system, teams gain visibility and control over assets.
Below are the main benefits for finance, IT, and operations teams.
- Benefits for Finance & Accounting Team
F&A teams use fixed asset tracking to maintain accurate audit records. It prevents asset loss and avoids duplicate or unnecessary purchases. It also improves financial reporting, including depreciation and tax calculations. Accurate tracking supports compliance and strengthens internal financial controls. - Benefits for IT Teams
IT asset tracking helps monitor all hardware, software, and related infrastructure. It ensures devices like laptops, servers, and mobiles are properly accounted for. Tracking assets improves IT security and reduces the risk of data loss. It also supports compliance by detecting unauthorized devices and software.
Learn how RFID simplifies the process and boosts accuracy in tracking IT assets in our blog on Using RFID for IT Asset Tracking>> - Benefits for Operations Teams
Operations teams rely on asset tracking to reduce downtime and improve usage. Moreover, it enhances maintenance efficiency and extends the life of critical equipment. As a result, better visibility leads to faster repairs and fewer unexpected breakdowns. According to a recent study by ibm.com, improved asset visibility boosted maintenance productivity by 28% and reduced maintenance and repair costs by 18%.
To see how these benefits play out in a manufacturing setup, don’t miss our article on Manufacturing Asset Tracking>>
Implementing an Asset Tracking Program
Implementing an asset tracking program requires planning and the right approach. Therefore, here are key steps to ensure success:
- Define Objectives: First, set clear goals for the program (e.g. reduce loss, improve utilization).
- Inventory Assets: Next, catalog all assets to know what needs tracking.
- Choose Technology: Then, select appropriate tracking tags (barcodes, RFID, GPS) and a compatible asset tracking system.
- Train & Deploy: After that , train staff on new processes and roll out the tracking software and tags.
- Monitor & Improve: Finally, regularly audit asset data and refine the system for accuracy and performance.
By following these steps, Finance, IT, and Operations teams can collaboratively build a strong asset tracking program. In summary, asset tracking provides real-time visibility, helping organizations save money and improve operational efficiency. Furthermore, it enhances security and ensures better control over valuable assets. Ultimately, adopting the right asset tracking solution drives smarter asset management and measurable ROI across departments.
FAQs
What is an Asset Tracking System?
An asset tracking system is the complete solution used to track and manage assets. It combines hardware like asset tags and scanners with tracking software. These systems automate the collection and update of asset location, condition, and ownership. They support businesses in reducing loss, improving control, and optimizing asset use.
A typical asset tracking system includes:
- Asset tracking software for centralized data and reporting
- Asset tags like barcodes, QR codes, or RFID tags
- Scanners or mobile devices for reading and updating asset data
- Dashboards and reports for real-time monitoring and analysis
What is Asset Tracking Software?
Asset tracking software is the digital core of any asset tracking system. It provides a centralized platform to store, view, and update asset data. Users can track asset location, condition, ownership, and maintenance status in one place. This software helps automate tracking, reduce manual errors, and improve decision-making.
What is asset location tracking?
Asset location tracking means monitoring the physical location of assets. It uses GPS, Bluetooth, or RFID technology to pinpoint each asset’s whereabouts. This capability helps companies quickly locate equipment and prevent loss or theft.
How much does asset tracking cost?
Asset tracking costs vary widely depending on the technology and scale. Basic methods like barcode labels are extremely low-cost per asset, whereas active tracking methods like BLE and GPS are expensive.
CONCLUSION
By now, it should be clear that asset tracking is a must-have practice for enterprises aiming to increase efficiency, save costs, and safeguard their valuable resources. Whether you start with a simple spreadsheet and barcode scanner or implement a state-of-the-art RFID and IoT solution, the key is to begin tracking what matters.
Managers in finance will appreciate the cleaner records and easier audits; consequently, there will be no more guessing where things are for the asset register. Similarly, IT teams will gain control over the sprawl of devices and ensure every piece of tech is accounted for throughout its IT inventory lifecycle. In addition, operations leaders will see smoother workflows, with equipment always in the right place at the right time. As a result, the benefits in reduced loss, improved utilization, and better decision-making will compound over time
