Asset Tagging: How to Label and Track Company Equipment

By Nicole Hullihen, former SaaS Chief Operating Officer and Microsoft MVP · Updated November 1, 2026

Laptops, drills, ladders, generators, tablets and kitchen equipment add up to a large share of what a small business owns. Without tags, it's hard to tell one drill from another, prove who had a laptop last or know what's missing. Asset tagging gives every item an ID, so you can track where it is, who has it and what condition it's in.

This guide explains how to set up asset tagging step by step, how to choose tag types and materials and how to use tags for checkout, maintenance and audits. It includes a free asset tag register template.

What Is Asset Tagging?

Asset tagging is labeling each piece of equipment with a unique ID and recording that ID in a central list. The tag links the physical item to its record: what it is, when you bought it, what it cost, who has it and its maintenance history. Most tags show a number and a barcode or QR code so the item can be scanned with a phone or scanner.

Free Asset Tag Register Template

Status options: In service  |  Checked out  |  In repair  |  Lost  |  Retired

Why Tag Assets?

• Know what you own. A tagged list is the starting point for insurance, budgeting and replacement planning.
• Reduce loss. Tagged equipment is easier to track and less likely to disappear.
• Faster checkout. Scan the tag instead of writing descriptions.
• Easier audits. Scan items and compare with the list.
• Better maintenance. Service history is tied to each specific item.
• Cleaner records. Purchase cost and dates support depreciation and insurance claims.

Step 1: Decide What to Tag

You don't need to tag every stapler. Tag items that are valuable, portable, shared or need maintenance.

Set a simple rule, such as tagging anything over a set dollar amount plus anything that leaves the building. See how to track IT assets for deciding what counts as an asset.

Step 2: Choose a Numbering System

Keep numbers simple and unique. Each number is used once and never reused, even after an item is retired.

Many small businesses use a short category prefix plus a sequential number. Avoid encoding information that changes, such as the employee's name or current job site, since the record should hold that.

Step 3: Choose Tag Type

For most small businesses, QR codes are the easiest choice because any smartphone can scan them. See how to make barcodes in Excel if you want to print your own.

Step 4: Choose Tag Material

Match the tag to where the equipment lives. A paper label on a jobsite generator won't last a month. Test a few tags on real equipment before ordering hundreds.

Step 5: Place Tags Consistently

• Put tags in the same spot on similar items, such as the bottom of laptops or the handle of drills.
• Choose a flat, clean surface that won't get scraped or covered.
• Keep tags visible enough to scan without taking the item apart.
• Avoid hot surfaces, moving parts and areas that get washed often.
• Clean the surface before applying the tag.

Step 6: Record Each Asset

A tag is only useful if the record behind it is complete. When you tag an item, record:

• Tag number
• Description, make, model and serial number
• Purchase date, vendor and cost
• Assigned employee, crew or location
• Condition
• Warranty and maintenance schedule
• Photo of the item and tag

Linking the asset to its purchase record makes it easy to find the receipt, warranty and vendor later. See the purchase order template.

Tagging New Equipment

Make tagging part of receiving. When new equipment arrives, tag it, record it and assign it before it goes into use. Items that skip tagging on arrival are the ones that go missing later. Keep a roll of blank tags with whoever receives deliveries.

Using Tags for Checkout and Assignment

Scan the tag when equipment is checked out and returned, and record the employee, date and condition. For long-term assignments, such as a laptop issued to an employee, record the assignment and have the employee sign for it. See the equipment checkout form.

Using Tags for Maintenance

Tie service records to the tag number so you can see each item's history: inspections, repairs and parts replaced. This helps you spot equipment that keeps breaking and decide when to replace it. See the equipment maintenance log.

Using Tags for Audits

1. Print or export the asset list by location or person.
2. Scan every tagged item you can find.
3. Compare scanned items with the list.
4. Investigate missing items and items in the wrong place.
5. Update records and note the audit date.

Many businesses audit high-value or portable items quarterly and everything else once a year.

Asset Records and Taxes

Tagging helps keep the property records your accountant needs. The IRS says to keep records relating to property until the period of limitations expires for the year you dispose of it, because those records are used to figure depreciation and gain or loss when the property is sold or disposed of. Ask your tax professional how your asset list should connect to your books. See equipment depreciation.

Retiring Tags

When an item is sold, scrapped, lost or stolen, mark it retired in the register with the date and reason, and remove or deface the tag if the item leaves your possession. Never reuse the tag number. Retired records show what happened to every item you've owned.

Example: An HVAC Company

An HVAC company with six vans kept losing track of vacuum pumps, gauges and recovery machines. The owner tagged every tool over $150 with a metal QR tag, recorded each one with its van and technician and asked techs to scan tools in and out when moving them between vans. A quarterly scan of each van showed which tools were missing, and lost-tool replacements dropped noticeably in the first year.

Common Mistakes

• Cheap labels that peel or fade.
• Inconsistent tag placement.
• Tagging without recording the asset details.
• Reusing tag numbers.
• Skipping new equipment at receiving.
• Never auditing after the first tagging project.

Asset Tagging Checklist

Tagging Existing Equipment

If you're starting from scratch, tag in phases instead of trying to do everything in one day.

1. Start with the most valuable and most-lost items, like laptops and power tools.
2. Tag one location, van or department at a time.
3. Record each item as you tag it, with a photo.
4. Assign each item to a person or location.
5. Move to the next area until everything on your list is tagged.

Expect a small team to tag and record 30 to 60 items in a few hours once tags and the register are ready.

Tagging Vehicles and Trailers

Vehicles already have VINs and plates, but an asset tag number ties them to the same register as your other equipment. Record the VIN, plate, registration and insurance dates, mileage at purchase and the assigned driver. Put the tag inside the door jamb or glove box so it stays protected. See the vehicle inspection checklist.

Tagging Tools That Move Between Jobs

Tools that travel between job sites are the hardest to track and the most likely to disappear. Tag them with durable metal or heavy-duty tags, record the home location or van, and scan them out and back in when they move. A weekly quick scan of each van or job box catches missing tools while there's still a chance to find them.

Asset Tags and Employee Offboarding

When an employee leaves, pull every asset assigned to them from the register and check each item back in by scanning its tag. Note condition and any missing items. A tagged list makes offboarding faster and avoids arguments over what an employee had.

Asset Categories

Ordering Tags

Order tags pre-printed with sequential numbers and codes, or print your own with a label printer for small inventories. Order more than you need, since you'll add equipment over time. Ask for samples first and test them on your toughest equipment before placing a big order.

Budgeting for Asset Tagging

Costs depend on tag type and quantity. Basic labels cost little, while metal and RFID tags cost more per tag, and RFID also needs readers. Weigh the cost of tags against the cost of lost or duplicated equipment. Replacing a few missing tools often pays for a whole tagging project.

Keeping the Register Accurate

The register is only as good as its last update. Assign one person to own it, record changes as they happen and run regular audits. When records and real equipment don't match, fix the record and find out why so the same gap doesn't happen again.

Asset Tagging for Remote Employees

Laptops, phones and monitors sent to remote employees still need tags. Tag items before shipping, record the employee and shipping date and ask employees to confirm the tag numbers when the items arrive. During audits, ask remote employees to send photos of each tag, or confirm the numbers through a quick form.

Asset Tagging Policy Language

Asset Tags and Insurance Claims

If equipment is stolen or destroyed, insurers usually ask what was lost and what it was worth. A tagged register with purchase dates, costs, serial numbers and photos makes it much easier to document a claim. Keep a copy of the register stored off site or in the cloud so it survives a fire or break-in at your location.

Asset Tag Audit Worksheet

Choosing Who Manages Tags

Name one person to own the asset tag register and the supply of blank tags. That person tags new equipment at receiving, records transfers and retirements, schedules audits and follows up on missing items. In a small business, this is often the office manager or operations lead. Having a single owner prevents duplicate numbers and gaps in the records.

Give the owner a short monthly routine: check that every new item received has a tag and record, follow up on items still marked missing and confirm returned equipment was scanned back in.

Final Thoughts

Asset tagging gives every piece of equipment an identity, so you know what you own, who has it and what shape it's in. Choose what to tag, keep numbering simple, pick tags that survive your work environment and make tagging part of receiving. Then use the tags every day for checkout, maintenance and audits, and your asset list will stay accurate as the business grows.

Track Tagged Assets With Updoot

Updoot's asset tracking stores each asset's record, assignment and maintenance history, and connects to purchasing so new equipment can be recorded as soon as it arrives.

Sources

• IRS: How Long Should I Keep Records?

Frequently Asked Questions