Asset Inventory with ITAM: How Accounting Accuracy Improves IT Asset Management

Effective asset management is becoming a critical success factor for organizations of all sizes. The growing complexity of IT infrastructures and the proliferation of devices and software create new challenges for IT departments. Without accurate accounting and regular inventory of assets, companies run the risk of experiencing reduced cost control, disruptions to critical systems and security vulnerabilities.

“Asset inventory plays a key role in addressing these challenges. It not only provides a comprehensive view of available resources, but also serves as a basis for strategic decision-making. Accurate and up-to-date asset information helps optimize costs, improve IT performance, and ensure compliance.”
– Evgenia Asoskova, ITAM Product Owner.

In this article, we look at how a properly organized inventory using the right tools can transform asset management by providing visibility, control and optimization of IT infrastructure.

What is an asset inventory?

Inventory serves as the foundation for effective IT asset management, providing visibility, control and optimization of an organization’s infrastructure.

The key steps of an inventory:

1. Prepare: plan the timing, scope of the inventory, identify those responsible.
2. Identification: each asset is assigned a unique identifier, such as an inventory number, which can be displayed in barcode or RFID tag format for easy identification.
3. Data collection (taking inventory): the process involves capturing the presence, condition and important characteristics of assets such as model, serial number, required specifications, location, responsible person.
4. Documentation and summarizing: forming inventory documents (inventory inventories, inventory reports, comparison sheets), recording in the accounting records the discrepancies identified, preparing change plans (if deemed necessary based on the results of the inventory).
5. Tracking changes: Inventory is not limited to one-time accounting. It involves regular updating of asset information, including moves, repairs and decommissioning.
6. Auditing: periodic verification of the actual existence and condition of assets, and reconciliation with data in the accounting system.

It is important to note that asset inventory is not a one-time event, but a repeatable process that is an integral part of asset management. Regular updating of asset data ensures the relevance of information and allows you to respond quickly to changes in the IT infrastructure.

Why do you need an asset inventory?

Let’s consider the main reasons why regular asset inventory is necessary for successful business operation.

Control and optimization of IT infrastructure

• Identifying unused or obsolete equipment, which helps optimize resources and reduce maintenance costs.
• Plan IT infrastructure upgrades and modernization based on up-to-date data on equipment health and performance.
• Preventing downtime due to equipment failure by timely replacement of obsolete components.
• Avoiding downtime due to equipment failure.
• Enforce even distribution of resources between departments and projects.

Financial aspects of asset management

Asset inventory has a direct impact on financial planning and cost control:

• Regularly tracking the presence and condition of assets provides up-to-date data on equipment types and utilization dates, which improves the quality of IT budget planning.
• Avoid redundant purchases by fully understanding available resources.
• Avoid redundant purchases by fully understanding available resources.
• Optimize equipment maintenance and support costs.
• Improving the IT capital expenditure planning process.

Compliance with regulatory requirements and internal policies

Inventory helps organizations:

• Compliance with audit and accounting requirements by providing accurate asset data.
• Ensure compliance with internal security and governance policies.
• Simplify the process of preparing for external audits and reviews.
• Monitor compliance with standards and policies regarding the use of IT equipment.

Enhance IT infrastructure security

Accurate asset accounting contributes to enhanced information security:

• Detecting unauthorized devices on the network.
• Ensuring timely hardware upgrades and patching.
• Controlling access to critical assets.

Methods for conducting an asset inventory

Asset inventory can be conducted in a variety of ways. The choice of method depends on the size of the organization, the specifics of the IT infrastructure, and the requirements for accounting accuracy. Let’s consider the main approaches to conducting an inventory.

Manual inventory

The manual inventory method involves the physical inspection and counting of assets by an organization’s employees. In manual inventory, employees can visually inspect the physical condition of each device, and if the process is properly organized, the accuracy of accounting will be quite high. However, this method is one of the most labor intensive and takes up the most employee time.

The manual inventory process usually includes the following steps:

1. Preparing a list of assets for inventory based on available data.
2. Physical walk-through of the premises and checking for equipment.
3. Checking the actual availability with the accounting data.
4. Labeling of unaccounted devices.
5. Making changes to the asset database.

Automated Inventory

The automated approach uses specialized tools to gather information about the composition of the IT infrastructure. This method is characterized by high speed of data collection, and it enables regular updates of equipment information. One of the key advantages of automated inventory is that the human factor influence on the accounting process becomes much less. However, this approach has its limitations, such as the difficulty in detecting devices that are physically disconnected from the network.

It is important to note that automated methods, such as network scanning, primarily work with configuration units of the IT infrastructure. Where asset and configuration unit databases exist in the system of record, additional processing and data matching may be required.

Combined Approach

The most effective way to conduct an asset inventory is through a combination of manual and automated methods. This approach combines the benefits of both – the resulting combination of automated data collection and physical inspection yields a highly accurate equipment inventory.

The combined method allows you to identify discrepancies between the information obtained by automated systems and the actual availability of equipment. In addition, this approach is quite flexible – the inventory process can be adapted to the specific needs and characteristics of each organization.

Choosing the best way to conduct an asset inventory depends on the specific needs and capabilities of the organization. It is important to ensure the regularity of the process and the accuracy of the data obtained, which will allow you to effectively manage the IT infrastructure and make informed decisions on its development.

Asset Inventory Process

An effective asset inventory requires a structured approach and clear adherence to certain steps. Let’s consider the main steps of the inventory process.

Preparing for an inventory

• Determining the scope of the inventory: making a list of assets to be checked.
• Formation of the inventory commission: appointment of responsible persons in accordance with the organization’s regulatory procedures.
• Preparing the tools: setting up the accounting system, preparing mobile devices or data collection terminals.
• Schedule planning: determining the timing of the inventory for different departments or locations.

Data Collection

• Physical inspection: walk the premises and visually inspect the assets.
• Label scanning: using barcodes or other identifiers to quickly record assets.
• Fixing information: recording key characteristics of assets (serial number, model, location).
• Documentation of condition: notes on the physical condition of equipment, damage or malfunctions detected.

Analysis and reconciliation of information

• Loading of collected data: transfer of information from mobile devices to the main accounting system.
• Automated reconciliation: matching collected data to the existing asset base.
• Detection of discrepancies: identifying missing, redundant or displaced assets.
• Analysis of discrepancies: investigating the reasons for the discrepancies identified.
• Analysis of discrepancies: investigating the reasons for the discrepancies identified.

Detecting and resolving discrepancies

• Finding missing assets: checking possible locations of missing equipment.
• Identifying surpluses: ascertaining the origin of unrecorded assets, including checking relevant documentation such as acceptance certificates.
• Data correction: making changes to the accounting system based on actual data.
• Data correction: making changes to the accounting system based on actual data.
• Discrepancy Investigation: analyzing the processes that led to discrepancies to prevent similar situations in the future.

Documentation of results

• Reporting: creation of detailed reports on the results of the inventory and their validation by the inventory committee.
• Preparing the inventory report: formal documentation of the results of the audit.
• Database update: updating information on assets in the accounting system.
• Recommendations: formulation of proposals for improving asset management processes based on the results of the inventory.
• Recommendations: formulation of proposals for improving asset management processes based on the results of the inventory.
• Fixing the results of the inventory in the accounting system.

Participants of the inventory process

Effective inventory of assets requires coordinated work of various specialists. Let’s look at the key participants in the process and their main responsibilities.

Roles and Responsibilities

Inventory process manager:

• Planning and coordination of the inventory
• Monitoring work execution, validating and analyzing results

IT specialists:

• Physical inventory
• Identify equipment specifications

Inventory staff:

• Maintaining asset database
• Conciliation of data with accounting records

Business Unit Representatives:

• Providing access to assets
• Providing information on equipment utilization

Information Security Specialist:

• Controlling compliance with security policies
• Asset risk assessment

Inventory committee

The inventory committee plays a key role in the asset accounting process.

Composition of the commission:

• Chair (usually the head of IT or the CFO)
• Representatives from IT, accounting, security, and key business units

Main tasks of the committee:

1. Approval of the inventory plan
2. Controlling the process of data collection and analysis
3. Resolving disputes
4. Signing final documents
5. Formulating recommendations to improve asset management

Clear role assignment and effective communication between process participants are key to a successful asset inventory.

Benefits of using ITAM for inventory

Implementation of a specialized asset management system (ITAM) significantly increases the efficiency of the inventory process and IT asset management in general. Let’s consider the key benefits of using such a system.

Optimization of process management

• Create and manage asset- and location-specific inventory tasks.
• Automatically comparing collected data with the existing database to identify discrepancies.
• Formation of reports and acts of inventory, which significantly reduces the time for preparation of documentation.

Automation not only speeds up the process, but also minimizes the impact of the human factor, increasing the accuracy of accounting.

Enhancement of accounting accuracy

• Unique identification of assets using barcodes or other markings.
• Detailed record of each asset’s characteristics, including technical parameters, location and responsible party.
• Tracking movement history.

Improved planning and optimization of IT resources

ITAM system provides tools for strategic IT asset management:

• Asset utilization analysis helps identify inefficiently used equipment.
• Predicting needs based on asset life and condition data allows you to plan for future purchases and upgrades.
• Stock optimization helps monitor availability of spare parts and consumables.

Flexibility and Adaptability

Modern ITAM systems support a variety of inventory methods. They can integrate with mobile devices, allowing the use of smartphones or specialized data collection terminals. The system also supports both manual data entry and import from files, making the inventory process more flexible and adaptable to the organization’s needs.

Improved control and security

Utilizing an ITAM system greatly enhances asset control:

• Distinguishing access rights ensures data security.
• Auditing user actions helps keep track of all asset transactions.
• Controls compliance with internal policies and regulations.

These aspects are especially important for organizations operating in regulated industries.

Conclusions