Assets are also known as fixed or capital assets and typically refer to an organisation’s valuable resources and equipment. These items have long-term business use and enable their owner to produce goods or perform services. Assets are tracked as unique items that are not consumed in production.
Because the word “asset” has a different meaning in the world of finance and accounting, the phrase “asset tracking” is used to indicate the monitoring of physical asset movement and condition, not the change in the monetary value of an intangible financial asset.
Systematically tracking assets is necessary across every industry to maintain accurate accounting records as well as real-time visibility of operations. For tracking purposes, each asset is tagged with a unique barcode identifier (e.g., make, model, serial number, etc.) and associated with a custodian or location.