Free Asset Management Software vs. Excel: Which Is Best for Your Business?

Think about your unique needs when choosing between Excel and free asset management software for your company. Your asset list, team requirements, and budget all play a role in selecting the best tool. An asset management template in Excel might be enough for smaller lists, but as your business expands, free asset management software could help simplify the process.

Why Free Asset Management Software Might Be Better

Free asset management software has a number of benefits over basic spreadsheets as your company expands and your asset list gets more complicated. These tools were created especially to assist companies in effectively managing, monitoring, and maintaining their assets.

Here’s why: 

Specialized Features

Unlike Excel, free asset management software is designed for IT asset tracking. It includes features like real-time tracking, automated notifications, detailed reporting, and asset lifecycle management. For example, tools like AssetLoom support QR code scanning and generate printable QR asset tags.

Real-Time Collaboration

To ensure that everyone has the most recent information, free asset management software enables multiple users to access and update asset information at the same time. Errors are decreased, and accountability is increased. Moreover, custom user roles improve security.

Advanced Tracking

Many software options support technologies like barcodes, QR codes, and RFID for precise asset tracking. These features are especially valuable for tracking movable assets, such as machinery. Some tools even offer GPS tracking (though this can sometimes incur additional costs), helping to monitor location and condition.

Attachments and Multimedia

Free software often supports adding documents, photos, and other files directly to asset records. This feature is very helpful because it can be challenging to link media or detailed notes to specific assets in Excel.

Automation

Routine tasks like reporting, depreciation computations, and maintenance reminders are automated by asset management software. As a result, less manual labor is needed to maintain your assets. When an asset needs maintenance or changes hands, for instance, AssetLoom notifies the user.

Scalability

Free asset management software can readily expand to handle additional data as your asset list expands. Tools like AssetLoom can effectively manage hundreds or even thousands of assets across multiple users, unlike Excel, which can become unmanageable when dealing with large numbers of assets.

Cost-Effectiveness

Many of these tools are free or come with very low-cost plans, making them a great option for businesses with limited budgets. 

Challenges with Free Asset Management Software

Free asset management software has some disadvantages despite its many benefits:

• Complex Setup: Setting up and configuring tools like GLPI and Ralph 3 can be difficult if you don't have a dedicated IT staff. First, they often require some technical expertise.
• Limited Support: Free software typically relies on community support, which may not be as responsive or comprehensive as the support offered by paid solutions. This could be a challenge for businesses without internal IT resources.
• Learning Curve: Some software has a steeper learning curve compared to Excel, especially for users who aren't familiar with asset management tools. This could slow adoption and affect the overall efficiency of your team.

When Excel Makes Sense

Excel can be useful for small businesses or basic asset tracking needs. Here’s when Excel might be the right choice:

• Simple Asset Tracking: Ideal for small businesses with basic requirements (e.g., asset names, ages, values) and fewer assets to track (less than 100).
• Excel is widely accessible and well-known to most users because it is a component of Microsoft Office, which lowers the learning curve.
• Customization: It is adaptable for companies with particular tracking needs because it enables customization through formulas and macros.
• Economical for Small Businesses: Because it comes with Microsoft Office for free, it's an affordable option for companies with simple tracking requirements.
• Manual Updates: Data must be updated manually, which can be time-consuming, especially for tracking maintenance schedules and changes in asset status.
• Data must be updated manually, which can take a lot of time, particularly when tracking maintenance plans and asset status changes.
• Error Prone: Because Excel spreadsheets require manual data entry, human error is likely to occur, potentially resulting in expensive errors.
• Scalability Issues: Excel becomes unwieldy as the asset list expands, making it challenging to efficiently manage bigger asset inventories.

Despite these limitations, Excel can be a good starting point for very small businesses with simple asset tracking needs, such as manually entering asset names, ages, descriptions, and values. Recent research indicates that it functions best for businesses with less than 100 manageable assets or 10 users.

Factors to Consider

When choosing between free asset management software and Excel, it’s essential to evaluate several factors based on your specific business needs. Here are key considerations to help guide your decision:

1. Business Size

Small Businesses: For businesses with a small number of assets (under 10), Excel may be sufficient. It’s a great tool for basic tracking like asset name, purchase date, and location.

• Example: A small startup with just 10 computers and some office furniture might find Excel perfect for asset tracking.

Growing Businesses: As your business scales and asset lists grow, free asset management software offers more efficient solutions, such as automation and better organization for handling large amounts of data.

• Example: A mid-sized company managing hundreds of IT assets across multiple locations may find free software like AssetLoom much more efficient, as it can handle asset tracking across various departments and offer cloud-based collaboration.

2. Asset Complexity

Simple Asset Tracking: If your assets are straightforward (e.g., just listing equipment with basic details), Excel can handle it well.

• Example: A small marketing agency with a few printers, laptops, and phones can track basic details using an Excel spreadsheet.

Advanced Asset Management: If you need to track complex information like warranties, maintenance schedules, depreciation, or lifecycle status, asset management software provides specialized features.

• Example: A company with machinery that requires regular maintenance and tracking of service history would benefit from software like AssetLoom, which provides reminders and detailed maintenance logs.

3. Team Size and Collaboration

Small Teams: If you’re managing assets alone or within a small team (less than 3 people), Excel can work well since there’s no need for extensive collaboration. However, be mindful of potential data conflicts if multiple people are accessing the same file.

• Example: A freelance consultant may prefer Excel for its simplicity and ability to track a few assets like computers, software, and accessories.

Larger Teams: For businesses with larger teams where multiple users need to update or access asset data, free asset management software is a better fit. It allows real-time collaboration and version control, reducing the risk of errors.

• Example: A tech company with 10+ employees can use GLPI to allow multiple team members to access and update asset information without the risk of overwriting or data conflicts.

4. Budget

Low Budget: Excel is a cost-effective solution if your business has a limited budget. If your asset tracking needs are minimal, it’s a free, simple solution.

• Example: A small e-commerce business may choose Excel to track IT inventory and equipment with minimal upfront investment.

Investing in Efficiency: Free asset management software can provide better value over time with its automation, reporting, and scalability, saving your team time and reducing errors as your business grows.

5. Technical Expertise

Non-technical Teams: Excel is ideal for teams that lack IT support or technical skills. It’s a familiar tool that most employees can use without specialized training.

• Example: A local retail shop with a small team might prefer Excel since their staff can easily enter and update data without the need for technical knowledge.

Tech-Savvy Teams: Free asset management software may require some initial setup and familiarity with technical concepts. However, tools like AssetLoom are relatively easy to deploy with basic IT skills.

• Example: A startup with an in-house IT team could easily set up AssetLoom, taking advantage of barcode scanning and asset tracking features without requiring extensive training.

6. Long-Term Needs

Short-Term Use: For businesses with a limited number of assets and no plans for significant growth, Excel might suffice for the long term.

• Example: A small consultancy with just a few laptops and some office furniture may not need to upgrade to software for the foreseeable future.

Long-Term Growth: If you anticipate growth or plan to manage a large volume of assets, free asset management software will provide better scalability and features like automated updates, reporting, and asset lifecycle management.

• Example: A growing IT services company may start with Excel but transition to a solution like AssetLoom as they expand, offering better tracking of thousands of devices across multiple locations.

Comparative Analysis: Pros and Cons

Now that we’ve discussed the key factors, let's take a closer look at the pros and cons of free asset management software versus Excel to help you make a more informed decision.

Free Asset Management Software

Pros:

Specialized Features: Designed for asset management, with features like real-time tracking, automated alerts, and lifecycle management.

• Example: AssetLoom offers to generate a bulk of QR codes for asset tagging, making asset tracking more efficient.

Real-Time Collaboration: Multiple users can access and update data simultaneously, reducing errors and improving accuracy.

Automation: Automates routine tasks such as maintenance reminders, depreciation calculations, and inventory updates.

Scalability: Easily handles growing asset lists, making it a good choice for expanding businesses.

Attachments and Multimedia: Can store photos, documents, and other media related to assets, improving audit trails and maintenance logs.

Cons:

• Complex Setup: Open-source tools like GLPI may require technical expertise to configure, making them harder to implement for businesses without IT support.
• Learning Curve: More complex than Excel, and may take time for users to become comfortable with.
• Limited Support: Free tools usually rely on community support rather than customer service, which can be challenging if issues arise.

Excel

Pros:

• Widely Available and Familiar: Excel is part of the Microsoft Office suite, and most users are already familiar with it, reducing the learning curve.
• Customizable: Users can create custom templates and formulas to meet their specific asset management needs. Example: A business can create a simple asset management template in Excel with custom fields and calculations for depreciation.
• Cost-Effective: Excel is a low-cost solution for businesses that already have Microsoft Office, making it budget-friendly for small operations.
• Flexible: Can be adapted to various asset management needs, from tracking simple equipment to more complex data.

Cons:

• Manual Updates: All data must be manually updated, which can be time-consuming and prone to errors.
• Lack of Automation: Excel does not provide automated features like asset depreciation tracking or maintenance reminders, which means businesses need to update everything manually. For instance, a business would need to manually review and update its equipment maintenance schedules in the absence of automation.
• Prone to errors: Excel spreadsheets are extremely prone to human error, with 88% of them having errors, according to studies.
• No Real-Time Collaboration: Excel doesn't support real-time collaboration, meaning multiple users might accidentally overwrite each other’s changes.
• Limited Scalability: As asset lists grow, managing them in Excel becomes cumbersome, leading to potential mistakes and inefficiencies.

Summary Comparison

Related Blog: Excel for Asset Inventory: Why It’s Time for an Upgrade 

Conclusion

The choice between free asset management software and Excel depends on your business needs. Excel is great for small businesses with simple asset tracking and limited growth. It’s cost-effective and easy to use but lacks automation and scalability.

But as your asset list expands, free asset management software becomes a better option because it provides specialized features, automation, and real-time collaboration. When selecting the best tool for you, take into account your company's size, asset complexity, and future requirements.

❓ Frequently Asked Questions

1. Can I use Excel for asset management in the long run? Excel can work for small businesses with fewer than 100 assets. However, as your business grows, it becomes harder to maintain, update, and avoid mistakes. That’s where free asset management software is more reliable.

2. What’s the biggest difference between Excel and free asset management software? The main difference is automation. Excel requires manual updates, while asset management software automates tracking, maintenance reminders, and reporting—saving time and reducing errors.

3. Is free asset management software really free? Yes, many solutions (like AssetLoom) offer free plans or low-cost options. Some advanced features may require a paid upgrade, but the core asset tracking tools are often included for free.

4. Does free software require technical expertise to set up? Some open-source tools can be complex, but many modern options are designed to be user-friendly. Platforms like AssetLoom can be set up with minimal IT skills.

5. Can free asset management tools scale with my business? Yes. Unlike Excel, which struggles with large asset lists, asset management software is built to handle hundreds or even thousands of assets across multiple users and locations.

6. What if my team is small—should I still use software? If you only manage a handful of assets, Excel might be enough. But if you plan to grow or want to save time with automation and reporting, starting with software is often the smarter move.