Shifting compliance thresholds, new technologies and tighter audit expectations have many institutions rethinking how they manage their capital asset management programs. But the most persistent challenges often start with people and processes, which remain underlying issues that prevent many programs from modernizing asset management with new technologies.
From vague purchase orders and inconsistent tagging to delayed disposals and misclassified costs, small errors at the start of the asset lifecycle can lead to major downstream issues. And, while modern tools like RFID and software that enables mobile verification can help, the real difference comes from how well staff understand their roles, communicate across departments, and follow consistent practices.
Improving asset management starts by training the right people and equipping them with the right technology.
How Early Mistakes Create Long-Term Asset Challenges
The root of many asset management headaches can be traced to the earliest stages of the asset lifecycle: the purchasing process. When departments submit purchase orders with vague descriptions, incomplete information, or misunderstanding of the asset’s purpose, it sets off a chain reaction that impacts tagging, tracking, capitalization, and compliance.
Consider this real-world example: a fabricated asset record was modified to include AA batteries—added five years after the original build. The batteries, purchased at a retail store, had no functional tie to the original asset and should have been expensed, not capitalized. In another case, a single invoice line bundled 20 different components, making it impossible to determine what should be tracked individually, capitalized together, or expensed outright.
These aren’t isolated mistakes. They’re signs of unclear guidance and inconsistent training which impacts the accuracy and effectiveness of an asset program. When department staff don’t understand how their purchase orders affect downstream processes, like tagging and capitalization, it sets off a ripple effect. The result is often confusion, delays, and increased audit exposure that could have been prevented with clearer policies and cross-functional support.
Cross-Functional Training Builds Stronger Asset Programs
Too often, asset training is limited to property accountants and finance teams. But effective asset programs depend on a broader foundation. Institutions that also train department administrators, purchasing staff, and principal investigators (PIs) build shared accountability across the full asset lifecycle.
Without proper training, departments may unknowingly misclassify costs, add enhancements incorrectly, or fail to notify property control when capital equipment is reassigned. In each case, clear training and process transparency could have prevented the issue.
When departments understand how assets are defined, tracked, and retired, they’re better equipped to identify potential issues. This kind of culture shift doesn’t happen overnight, but it starts with clear policies and regular touchpoints. Workshops, process guides, and just-in-time support all contribute to fewer errors, better records, and less confusion when audit season rolls around.
Technology Amplifies What People Do Right
Once your people understand the process, modern tools can accelerate it. RFID tagging, mobile verification, and cloud-based asset tracking software can reduce time in the field, improve tracking accuracy, and simplify audits.
For example, if asset records include end users—not just purchasing contacts—verifying those assets during physical inventory becomes much easier. Mobile verification links can be sent directly to the people who actually interact with the equipment, even if they’re off-site or in another department. Instead of chasing spreadsheets and photos through long email chains, asset managers get fast, verifiable proof that an item exists, where it’s located, and who’s using it.
In dense asset environments like labs or server rooms, RFID makes it possible to verify dozens of items in seconds without line-of-sight scanning. And with the right processes in place, even offsite assets or hard-to-categorize items like fabricated assets or used equipment can be tracked more reliably across their lifecycle.
Improving your asset management program isn’t about starting from scratch. Often, it begins by asking: Where are we seeing the most breakdowns? Once you identify those friction points, technology can help close the loop, especially when the people using it understand how and why to apply it. Want to learn more?
Watch our on-demand webinar How To Modernize Asset Management With The Right Training And Tools.