IT Asset Management Best Practices for SMBs

If someone asked you right now how many laptops your business owns, what software licences you are paying for, and which devices are out of warranty, could you answer confidently? For most Australian SMBs, the honest answer is no.

IT asset management (ITAM) sounds like something only large enterprises need, but small businesses with even ten devices can save significant money and reduce risk by tracking their IT assets properly.

Why Asset Management Matters for Small Business

Financial reasons:

• Avoid paying for software licences you are not using
• Plan hardware replacements before failures cause downtime
• Claim depreciation on IT assets accurately
• Negotiate better deals on renewals when you know exactly what you have

Security reasons:

• Untracked devices are unpatched devices
• Know which machines have endpoint protection installed
• Identify shadow IT (unauthorised software and services)
• Respond to incidents faster when you know your environment

Compliance reasons:

• Software licence audits can result in significant fines. Microsoft, Adobe, and Autodesk actively audit Australian businesses
• The Australian Cyber Security Centre (ACSC) lists asset management as foundational to the Essential Eight maturity model
• Insurance claims after theft or damage require proof of ownership

Start With What You Have

You do not need an enterprise ITAM platform to begin. A structured spreadsheet is a perfectly valid starting point for a business with fewer than 50 devices.

Essential fields for your asset register:

Field	Example
Asset ID	LAP-022
Device Type	Laptop
Make and Model	Dell Latitude 5520
Serial Number	ABC123DEF456
Operating System	Windows 11 Pro
Assigned To	Jane Smith
Department	Operations
Purchase Date	15 March 2021
Purchase Price	$1,650
Warranty Expiry	15 March 2024
Location	Sydney Office
Status	Active

Create separate tabs or registers for:

• Hardware (laptops, desktops, monitors, printers, network equipment)
• Software licences (per-user, per-device, and volume licences)
• Cloud subscriptions (Microsoft 365, Xero, CRM, etc.)
• Mobile devices (company-owned phones and tablets)

Hardware Asset Management

Establishing an Asset ID System

Create a simple, consistent naming convention for asset IDs:

• LAP-001 through LAP-999 for laptops
• DES-001 for desktops
• MON-001 for monitors
• PRT-001 for printers
• NET-001 for network equipment (switches, access points, firewalls)
• MOB-001 for mobile devices

Apply physical labels to each device with its asset ID. Dymo or Brother label makers produce durable labels that survive daily use. Place labels on the bottom of laptops, the back of monitors, and the rear of desktops.

Lifecycle Management

Every IT asset follows a predictable lifecycle. Planning for this cycle prevents surprise failures and budget blowouts.

Typical lifecycle for Australian SMBs:

• Laptops: 3 to 4 years
• Desktops: 4 to 5 years
• Monitors: 5 to 7 years
• Printers: 3 to 5 years (or based on page count)
• Network switches: 5 to 7 years
• Firewalls: 3 to 5 years (aligned with firmware support)
• Servers (on-premise): 4 to 5 years
• Mobile devices: 2 to 3 years

Financial year planning: Australian businesses should align hardware replacement planning with the financial year (July to June). Each January, review your asset register and identify devices reaching end-of-life in the coming financial year. This gives you six months to budget and procure replacements.

Depreciation: The Australian Taxation Office (ATO) allows businesses to claim depreciation on IT assets. As of the current financial year, small businesses with aggregated turnover under $5 billion can instantly deduct the full cost of eligible assets under the Temporary Full Expensing measure. Check with your accountant for the latest rules applicable to your business.

Disposal and Recycling

When devices reach end-of-life, proper disposal is essential.

Data destruction:

• Perform a secure wipe of all storage devices before disposal
• For SSDs, use the manufacturer’s secure erase utility
• For HDDs, a DBAN (Darik’s Boot and Nuke) wipe or physical destruction is appropriate
• Document the data destruction process for each device

Environmental compliance:

• Australia’s National Television and Computer Recycling Scheme provides free recycling for old computers and peripherals
• Drop-off locations are available through programs like TechCollect and MRI (formerly E-Cycle Solutions)
• Do not dispose of IT equipment in general waste — it is an environmental hazard and may breach state environmental regulations

Decommissioning checklist:

1. Back up any data that needs to be retained
2. Remove the device from Azure AD, Intune, or other management systems
3. Revoke any licences assigned to the device
4. Perform secure data destruction
5. Remove physical asset labels
6. Update the asset register to reflect “Decommissioned” status
7. Recycle or donate the device through an appropriate program

Software Licence Management

Software licence management is where many Australian SMBs lose money without realising it.

Common Licence Types

Per-user licences: The licence is assigned to a person who can use the software on multiple devices. Microsoft 365 is a common example — one licence lets a user install on up to five PCs or Macs and five mobile devices.

Per-device licences: The licence is tied to a specific device. Anyone using that device can use the software. Common for shared workstations.

Volume licences: A single agreement covering multiple installations, often with discounted pricing. Relevant for businesses with over 20 users purchasing the same software.

Subscription licences: Ongoing monthly or annual payments. Most cloud software follows this model.

Tracking Software Licences

For each software licence, record:

• Software name and version
• Licence type and quantity
• Licence key or agreement number
• Purchase date and cost
• Renewal date
• Vendor contact details
• Assigned users or devices

Identifying Waste

Conduct a software licence audit at least annually. Look for:

• Unused licences: Users who have a licence assigned but have not used the software in over 90 days. Microsoft 365 admin centre provides usage reports that make this easy to check.
• Duplicate tools: Multiple teams paying for different tools that serve the same purpose (for example, both Trello and Asana for project management).
• Overprovisioed licences: Users with premium licences who only need basic functionality. For example, Microsoft 365 Business Premium assigned to a user who only needs email and basic Office apps.
• Departed employee licences: Licences still assigned to users who have left the business.

A typical Australian SMB with 20 users wastes $2,000 to $5,000 per year on unnecessary software licences. A simple audit pays for itself quickly.

Cloud Subscription Management

With the proliferation of SaaS tools, cloud subscription tracking is increasingly important.

Create a subscription register that includes:

• Service name (for example, Microsoft 365, Xero, Canva)
• Monthly or annual cost
• Number of licences or seats
• Billing contact and payment method
• Contract end date and renewal terms
• Auto-renewal status

Review monthly: Set a calendar reminder to review your subscription costs monthly. SaaS costs have a tendency to creep up as trials convert to paid plans and team members sign up for new tools without IT oversight.

Tools for IT Asset Management

When your business outgrows a spreadsheet, consider these tools.

For businesses with 10 to 50 devices:

• Snipe-IT: Free, open-source asset management. Self-hosted or cloud-hosted (approximately $40 per month for the hosted version). Excellent for hardware tracking with barcode scanning support.
• Lansweeper: Network scanning and asset discovery tool. Free for up to 100 assets. Automatically discovers devices on your network and collects hardware and software information.

For businesses with 50 to 200 devices:

• Microsoft Endpoint Manager (Intune): If you have Microsoft 365 Business Premium, Intune is included. It provides device management, software deployment, and inventory reporting.
• NinjaRMM or Datto RMM: Remote monitoring and management tools that include asset tracking. Typically $3 to $6 per device per month.

For managed service provider (MSP) clients:

If your business uses an MSP for IT support, ask them about their asset management capabilities. Most MSPs use RMM tools that provide asset tracking as part of their service. Ensure you have access to asset reports and that the MSP maintains your asset register.

Building Asset Management Into Your Processes

Asset management only works if it is maintained. Build it into your existing processes:

New employee onboarding:

1. Assign devices from inventory or procure new equipment
2. Update the asset register with the new assignment
3. Install and licence required software
4. Document the device handover

Employee offboarding:

1. Collect all company devices
2. Revoke software licences and access
3. Wipe returned devices
4. Return devices to inventory or schedule disposal
5. Update the asset register

Quarterly reviews:

1. Cross-reference the asset register against physical devices
2. Check for devices not in the register (new purchases, personal devices)
3. Review software licence usage and identify waste
4. Update warranty and lifecycle status

Annual planning:

1. Identify devices approaching end-of-life
2. Budget for replacements in the next financial year
3. Review vendor contracts and negotiate renewals
4. Plan for any technology changes or upgrades

Getting Started This Week

If you currently have no asset management process, here is a practical plan to get started:

Day 1: Create a spreadsheet with the fields described above. Walk through your office and record every device you can see. Note serial numbers, makes, and models.

Day 2: Log in to your Microsoft 365 admin centre (or equivalent) and export your user and licence list. Record all software subscriptions.

Day 3: Cross-reference your physical device list with your user list. Identify any gaps — devices without assigned users, users without devices, or licences without users.

Day 4: Order asset labels and apply them to every device. Establish your asset ID convention.

Day 5: Share the asset register with your team and establish the ongoing maintenance processes described above.

Within a week, you will have a functional asset management system that saves your business money, improves security, and prepares you for growth. It does not need to be perfect on day one — it just needs to exist and be maintained.