financialtreat – will explain about Asset Management Services and Benefits You Should Know which you will get in the following article. let’s look at this article carefully!
Danylo and Lemer 1999 explained the notion of asset management as a methodology for distributing resources or assets so that they can be used efficiently to meet certain goals.
Another expert, Gima Sugiama (2013), defines asset management as the art of guiding wealth or assets. This guiding art includes the processes of planning, auditing, maintaining, and removing and diverting non-conforming assets.
Asset Management Services and Benefits You Should Know
Then what is the meaning of asset in general? In general, asset management is the process of managing assets belonging to individuals, organizations, or companies effectively and efficiently to achieve certain goals.
Asset Management Benefits
The application of asset management in companies is useful for reducing non-optimal expenses and increasing income. Meanwhile, other benefits of that asset for companies are as follows.
Maintaining asset value (Asset Management)
The first benefit of asset is to maintain the value of the company’s assets. With careful planning, companies can reduce the risk of losing the value of their assets due to loss or damage. Therefore, the value of the company’s assets remains high and can survive even in unfavorable situations.
Increase security (Asset Management)
Considering the number of company assets is not small, the implementation of asset is useful to keep assets safe and avoid the risk of being lost or damaged. The existence of a special team tasked with handling it makes the company not have to worry because the assets have been recorded and stored safely.
Ease of budgeting
Asset works with a special system so that it can facilitate the preparation of the company’s budget. The company’s asset information system allows companies to know the condition of assets so that the budgeting process is more practical and flexible.
Prevent overbuying
Another benefit of asset is preventing excess asset purchases. Armed with data from the asset management team, companies can prepare budgets based on priorities and reduce expenses.
Create risk management
Although it can manage assets and prevent companies from experiencing losses, asset management cannot predict future threats. Therefore, the implementation of assets must be complemented by the creation of risk management to help companies to manage the uncertainty of their assets in the future.
Monitor the preparation of assets
Depreciation of assets is something that companies must be wary of. If used continuously, the asset will decline in quality both in terms of function and value. Therefore, the role of asset management is to monitor these much-needed assets. Depreciation of assets is important to monitor because it must be written in the company’s financial statements.
Asset Management Goals
Now, after knowing the meaning and benefits of asset management, it helps you also understand the purpose of asset in the company.
As a form of securing assets and funds
Asset management is a company’s efforts to allocate assets so that they can be used efficiently in the long term. That way, the company can prevent the value of assets from falling or wasting the use of assets and funds.
Maintain asset value in the long term
Performing asset is an effort to build awareness of the owners in order to continue to maintain the value of their assets. In asset, the owner will learn if the value of the asset goes up or down depending on how the company or person manages it.
Knowing the status and condition of assets
The purpose of assets is to know the status and condition of assets. When starting planning and maintenance, the owner can know if the asset still has a high value and can continue to increase in the future.
The asset also aims to remove assets if they are considered no longer profitable or have the potential to cause losses in the future.
Maximize asset profit
Furthermore, the goal of asset management is to get the maximum profit from the assets owned. Asset on a regular basis makes the company more careful before buying assets, so the company will only choose assets with a level of profit that continues to grow in the future.
Choosing the right asset investment
Reducing the number of losses is the goal as well as the benefits of asset management. By prioritizing and spending the budget on the best assets, companies can reduce the risk of future losses.
Asset Management Cycle
When managing assets, companies must follow certain stages or cycles in a coherent manner so that the management process provides maximum results. The following is an asset management cycle that a company must do.
Planning asset requirements
The first stage in the asset management process is planning the company’s asset needs. In this stage, the asset management team is tasked with explaining the needs of the company’s fixed assets both in the long and short term as well as the management plan. This process is expected to minimize losses and increase company profits.
Asset procurement
After the plan is approved, the next cycle of asset management is the company procuring assets by purchasing assets as needed. This procurement process can be carried out by the company itself or ask for help from other parties who provide assets.
Asset audit legal
Legal asset audit or legal due diligence is an asset management stage that aims to check ownership status, procurement procedures, and asset transfer flows. In addition, the legal audit set also serves to find solutions if assets are caught in legal problems.
Asset maintenance and operation
After all the recording and legal processes are completed, the company can use the assets for business purposes according to their respective functions. Companies must also carry out maintenance so that assets can be used in the long term.
Asset valuation
The asset management team needs to conduct asset assessments on a regular basis in order to find out in detail the value of the company’s assets. This stage is also useful for knowing the history of assets that have been transferred or deleted.
Asset update
After being used for a certain period of time, the value or function of the asset may decline. If the asset can be repaired, the company will carry out renewal or rejuvenation so that the asset can be used optimally again.
Asset write-off
If the asset value continues to decline and cannot be renewed, the asset management team must remove it by destroying it or using it so as not to cause losses in the future.
Asset management tips
Asset management is an asset management process that must be carried out based on applicable rules or cycles. However, if your company is just starting the asset management process, here are some useful tips to implement so that wealth management is more efficient and the company can achieve business goals.
Check all assets owned
When you are just starting out in asset management, it is important for companies to regularly check the value of their assets. This inspection is carried out to avoid the risk of unexpected expenses due to the burden of ownership of unrecorded assets.
An example of asset management is conducting monthly inspections so that the company does not have to pay taxes on damaged cars or motorcycles.
Understand the asset life cycle
Understanding the asset life cycle can make it easier for a company to manage and use its assets. In addition, companies can also save time in making decisions to update or delete assets.
Schedule cash inflows and outflows
The number of cash inflows and cash outflows in the company often. Makes someone forget that it is closely related to the number of company assets. To stay in control, you can create a schedule that shows the timing of cash inflows and outflows. This schedule is useful for maintaining a balance of cash assets and business liabilities.
Determine the person in charge of the assets
While working, of course, the owner of the asset cannot continuously monitor the condition of his assets. The number of other obligations. And the business that continues to grow makes time for someone to supervise assets increasingly limited. Therefore, you can appoint someone in charge of the assets.
If your business gets bigger, it’s a good idea to create a special team in charge of managing company assets.
Learn asset depreciation
Knowing the depreciation or depreciation of assets is one of the most important points in asset. That way, companies can avoid losses and facilitate decision-making when assets can no longer be used optimally.
Read more about financial wealth management:
- What is a Finance Manager and What are the Requirements to Become a Finance Manager?
- Find Out About Portfolio Management That Turns Out To Be Very Useful!
Use smart asset management solutions
Advances in technology are very helpful in the process of managing assets owned by the company. Now, the asset process no longer needs to be done manually. Because the company’s asset information system is available so you no longer need it. To flip through thick reports to manage wealth.
Advances in technology are very helpful in the process of managing assets owned by the company. Now, the asset process no longer needs to be done manually. Because the company’s asset management information system is available. So you no longer need to flip through thick reports to manage wealth.