How to Build a Simple IT Asset Inventory to Cut Costs and Close Security Gaps

If you run a small business, it’s easy to track your IT setup since you’re likely managing only a few devices and software. But as your business scales, so does the need for more devices to keep operations running smoothly. 

The problem is that without a good IT asset inventory, it can be difficult to know how your assets are used. This can cost money and make you an easy target for hackers. For instance, unused licenses can renew themselves, old devices may stay connected to your network, and software may be outdated. Even worse, you might lack the records to prove compliance with security measures or data management during audits.

Research shows just how common this challenge is. A 2023 survey by Oomnitza found that 50% of enterprises waste at least 10% of their annual software, SaaS, and cloud infrastructure budget due to unused or unaccounted-for licenses. And according to Zylo’s SaaS Management Index report, organizations waste around $21M annually on unused SaaS licenses.

What IT Asset Inventory Entails

An IT asset inventory is a record of your organization’s tech assets. This includes physical hardware (laptops, servers, mobile devices, networking gear), software (licensed applications, SaaS subscriptions), cloud resources (VMs, storage, databases), and even software licenses or usage terms.

An IT asset inventory helps you know what you have and how it’s being used. It makes it easier to identify idle or redundant devices, unused software licenses, or hardware approaching end-of-life.

How to Build an Effective IT Asset Inventory

Categorize All Assets

Identify every technology you use. Once you have your list, categorize the assets into groups. These may include hardware, software, network infrastructure, cloud resources, and peripheral or support devices.

This process helps you spot outdated hardware still in use and SaaS subscriptions still auto-renewing despite being unused. You might also find duplicate software tools performing the same function, unassigned employee devices, or external hard drives with sensitive data that were never wiped. You can then decide whether to retire or upgrade each asset. This not only strengthens your cloud network security, but also ensures resources are properly allocated.

Collect Key Asset Information

After listing assets, you need to collect additional data for each including:

• Asset name
• Owner or user
• Location (office, remote, department)
• Purchase or deployment date
• Warranty, support, or contract info
• Software versions, patch levels, and license status
• Current usage, last login, or connection status
• Dependencies or relationships (which systems it interacts with)
• Security settings (encryption, access policy, backup frequency)

This data will help you plan upgrades or replacements more accurately, manage warranty renewals, and avoid unexpected maintenance or licensing costs. You will also know when hardware becomes outdated, or when software requires an upgrade.

Use Centralized Tools for Asset Tracking

While spreadsheets or manual lists can work for small setups, they can become unmanageable when assets scale or when you have remote devices. Centralized tools such as cloud-based IT asset management systems allow you to automatically import device data, track software installations, monitor license usage, and detect devices that are off-network or not reporting updates. They can also flag assets approaching end-of-life or needing license renewals. 

Maintain and Update Regularly

Eventually, you’ll need to retire or replace certain assets. Employees may switch devices or depart the company. Consider scheduling regular updates to keep your records accurate. You can remove retired devices, update software versions or licensing data, and remove subscriptions no longer needed.

Don’t Let Hidden Assets Drain Your Budget or Compromise Your Security

An IT asset inventory gives you control over your entire technology environment. You’ll know exactly what you own, where each asset is located, who’s using it, and whether it’s properly updated. An IT asset inventory will help:

• Cut costs. You can cut costs by identifying unused hardware, such as old laptops or inactive devices and software licenses no one uses. Instead of paying for redundant subscriptions or buying new equipment, you can cancel, reallocate, or repurpose existing resources.
• Enhance the procurement process. Since you have an accurate record overview of your assets, you can plan future purchases based on your needs and negotiate better terms with vendors.
• Enhance your security. Spot security gaps early by quickly identifying outdated systems, unpatched devices, or assets nearing the end of their warranty that could expose your business to cyber threats.
• Ensure compliance readiness. Having up-to-date records makes it easy to produce audit logs and prove adherence to data protection standards. This means you will avoid unnecessary fines or compliance delays caused by missing documentation. It also builds trust with clients and partners.

At Elliman Technologies, we help businesses design and implement reliable IT asset management systems. Our team will assess your current setup, automate asset tracking, and create a system that keeps your data accurate, secure, and easy to manage. Get in touch with us to book a free consultation.