9 Smart Rules to Decide How Many Assets to Tag (What NOT to Tag Explained) – 2026 Guide

Introduction

How many assets to tag is one of the most common questions companies face during fixed asset tagging projects.

Most organizations assume that every asset should be tagged — but this is a costly mistake.

In our experience, a significant share of assets listed in the Fixed Asset Register — often somewhere between 30% and 60% — should NOT be tagged.

This guide explains how many assets to tag, what assets should be tagged, and what should not be tagged based on real industry experience.

---

Why Companies Get Asset Counts Wrong When Deciding How Many Assets to Tag

Before deciding what to tag, you need to understand why asset counts are often inflated.

Common issues in FAR (Fixed Asset Register):

• Duplicate entries
• Grouped assets split incorrectly
• Consumables treated as assets
• Bulk items listed individually
• Scrap or obsolete items still active

👉 Example:
For example, suppose a company’s FAR shows 1,90,000 assets — but on closer review, only around 60,000 of those actually need tagging.

This mismatch leads to:

• Over-budgeting
• Wrong project timelines
• Audit complications

---

👉 What Assets Should Be Tagged, When Deciding How Many Assets to Tag

Not all assets need tagging — only those that require unique identification and tracking

✅ Tag these assets:

1. High-Value Assets

• Machinery
• Servers
• Medical equipment
• Capital equipment

👉 Reason: Financial impact + audit importance

---

2. Movable Assets

• Laptops
• Tools
• Office equipment

👉 Reason: High risk of misplacement or theft

---

3. IT Assets

• Desktops
• Printers
• Networking devices

👉 Reason: Frequent movement + accountability

---

4. Assets with Serial Numbers

• Equipment with OEM identification

👉 Reason: Easy mapping with FAR

---

5. Compliance-Critical Assets

• Assets required for audit tracking
• Insurance-linked assets

👉 Reason: Regulatory importance

---

What Assets Should NOT Be Tagged (Critical Section)

This is where most companies go wrong 👇

❌ Do NOT tag these:

1. Consumables

• Stationery
• Cleaning items
• Packaging materials

👉 These are inventory, not fixed assets

---

2. Low-Value Bulk Items

• Plastic crates
• Bins
• Small tools
• Pallets

👉 Tagging thousands of such items is costly and unnecessary

---

3. Fixed Civil Structures

• Flooring
• Walls
• Embedded structures

👉 These are non-movable and don’t need tagging

---

4. Tiny or Non-Taggable Items

• Cables
• Adapters
• Small accessories

👉 Physically impractical to tag

---

5. Scrap / Obsolete Assets

• Damaged assets
• Non-functional items

👉 Should be removed from FAR instead of tagging

---

Taggable vs Countable – The Most Important Concept

This is the biggest differentiator in professional asset management

🔹 Taggable Assets

• Require unique ID
• Individually tracked
• Tagged with QR / barcode / RFID

🔹 Countable Assets

• Tracked in quantity only
• No unique identification required

---

📊 Illustrative classification split

Category	Quantity
Total assets in FAR	1,50,000
Taggable assets	55,000
Countable assets	95,000

👉 If you tag everything:

• Cost rises in proportion to the extra items tagged
• Time increases drastically

👉 If you classify properly:

• Project becomes efficient and cost-effective

---

How Many Assets Should You Tag? (Practical Answer)

There is no fixed number — but based on industry experience:

👉 In practice the taggable share is usually somewhere between a third and two-thirds of the FAR count

This depends on:

• Industry type
• Nature of assets
• FAR quality
• Business operations

---

Cost Impact of Wrong Tagging Decisions (CFO Perspective)

If you tag everything blindly:

❌ Financial impact:

• Tag cost explosion
• Manpower cost increase
• Project delays

---

💡 Example:

Using the same illustrative register from earlier — 1,90,000 assets, ~60,000 genuinely taggable — tagging the full register means buying and applying more than three times the tags, and paying manpower to tag items that did not need a unique identity in the first place. At any tag rate, the cost difference between the two scopes is the
single largest variable in the project — which is why classification comes before procurement, not after.

---

Common Mistakes Companies Make

• Tagging everything without classification
• Ignoring countable vs taggable concept
• Relying on incorrect FAR
• Not removing scrap assets
• No pre-verification before tagging

According to accounting guidelines issued by the Institute of Chartered Accountants of India (ICAI), maintaining an accurate Fixed Asset Register (FAR) is essential for audit compliance and financial reporting.

---

Expert Approach Used by TagMyAssets

At TagMyAssets, we follow a structured methodology:

✔ Floor-to-Sheet Approach

• Physical verification first
• Identify actual assets

---

✔ Taggable Identification Before Tagging

• Classify assets
• Avoid unnecessary tagging

---

✔ Mobile-Based Verification

• QR scanning
• Photo capture
• Location mapping

---

✔ Smart Cost Optimization

• Reduce tagging volume
• Improve accuracy

---

👉 This ensures:

• Faster execution
• Lower cost
• Audit-ready reports

---

Final Conclusion

Deciding how many assets to tag is not about tagging everything — it is about tagging the right assets. A smart tagging strategy reduces cost, improves audits, and ensures better asset control.

👉 Asset tagging is NOT about tagging everything
👉 It is about tagging the right assets

Remember:

• Taggable ≠ Total assets
• Countable assets should not be tagged
• Proper classification saves huge cost

At TagMyAssets, we help companies identify exactly how many assets should be tagged using real on-ground verification and FAR reconciliation methods.

---

Frequently Asked Questions

Q1. Should all assets be tagged?

No. Only assets requiring unique identification should be tagged.

---

Q2. What percentage of assets should be tagged?

It varies widely — commonly between a third and two-thirds of the FAR count, depending on how many countable and non-taggable items the register holds.

---

Q3. What is the difference between taggable and countable assets?

Taggable assets are individually tracked; countable assets are tracked in quantity only.

---

Q4. Why is asset tagging important?

It improves tracking, audit accuracy, and reduces asset loss.

Q 5.What assets should not be tagged?
Low-value, consumables, and bulk items like chairs, bins, cables should not be tagged.

Q6. Why do companies overestimate asset tagging requirements?
Because FAR includes countable items that are not taggable.