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 reality, 30%–60% of assets listed in the Fixed Asset Register (FAR) 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: A company shows 1,90,000 assets in FAR, but actual taggable assets are only ~60,000
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
âś… 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
đź“Š Example from Real Projects:
Category
Quantity
Total assets in FAR
1,50,000
Taggable assets
55,000
Countable assets
95,000
👉 If you tag everything:
Cost increases by 2X–3X
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:
👉 Typically, only 40%–70% of assets are taggable
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
đź’ˇ Example:
If you tag:
1,90,000 assets × ₹25 RFID tag 👉 Cost = ₹47,50,000
But actual taggable:
60,000 assets 👉 Cost = ₹15,00,000
👉 Savings = ₹32,50,000
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:
âś” Floor-to-Sheet Approach
Physical verification first
Identify actual assets
âś” Taggable Identification Before Tagging
Classify assets
Avoid unnecessary tagging
âś” Mobile-Based Verification
QR scanning
Photo capture
Location mapping
âś” 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.
FAQs (SEO Boost Section)
Q1. Should all assets be tagged?
No. Only assets requiring unique identification should be tagged.
Q2. What percentage of assets should be tagged?
Typically, only 40–70% of assets should be tagged depending on usability and audit importance.
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.
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Why Choose Our Asset Tagging Services in India?
We work with the latest technology available for helping organizations of all sizes manage and maintain their assets including fleets, facilities, consumables, equipment, property and infrastructure efficiently and cost-effectively.
