financialtreat – will explain about Company Asset Management Tips that you will get in the following article. Let’s look at this article carefully!
Asset management is not much different from wealth management. The difference between the two lies only in the target. If wealth management targets individuals with above-average wealth then the target asset management is the company.
An asset is important for a company that must be managed as well as possible. The company’s assets can be equipment and equipment, warehouses, and others. To maintain assets well, a method called asset management is needed. Through good and maximum asset management, the company will be faster to achieve goals and make profits.
Understanding Asset Management
Asset management is a systematic process to maintain, renew, save all assets owned by the company in order to achieve an effective and efficient business. So, it can be concluded that this is very important for the company.
From this definition, assets are divided into several types (physical assets, finances, human resources, information, and other intangible assets). Managing these assets sometimes runs into some obstacles. Therefore, there needs to be special skills in this matter.
Asset Management Objectives
The main goal of asset management of a company is to manage assets more effectively and efficiently so that decision making is faster and more appropriate. Some other destinations for the company include:
- Ensuring the ownership status of an asset
- Inventorying the wealth and life of assets owned
- Protect the value of assets to make them more durable
- Minimize costs over the life of an asset.
- Ensuring an asset can generate maximum profit
- Use and utilize assets optimally
- References to compiling balance sheets in accounting
Asset Management Cycle
In doing asset management, the company must go through several stages that will form a cyclical unity. This cycle must be passed properly so that the final process of management functions optimally. What cycles does the company have to go through?
Asset Needs Planning
Planning needs is the first step that must be passed. The company will analyze and sort what needs are needed in managing the company’s assets. For example; maintenance, procurement, and so on.
Asset Procurement
At this stage, the company will carry out asset procurement activities. The cost of procurement of assets can come from internal or external party loans of the company.
Asset Inventory
Once the required assets are in place, the company will identify the quality and quantity of assets in terms of physical and non-physical. Each asset will be given a special code to be easily recognized in the storage area.
Legal Audit of Assets
Then the company will conduct an audit regarding the status of assets, procurement systems and procedures, systems and transfer flows. In addition, the company will also identify the issue of legality of assets that could arise along with how to overcome them.
Operation and Maintenance of Assets
The company uses its assets for business processes with each different functionality. Operation is also followed by the maintenance of assets so that assets are more durable, effective and efficient in their use.
Asset Valuation
The company will determine the value of the assets own so that the value of the wealth own is more visible. From this, the company will assess whether assets of a certain value will be transferre or written off.
Asset Removal and Transfer
If the asset is considere not so profitable, the company will decide to be dispose of or destroye. However, if it is still considere profitable, the company will transfer assets for other uses by transferring authority and responsibility to assets to other divisions.
Asset Renewal
Some cases of assets that are judge not to function properly can be returne their useful value with renewal. Updates are carrie out repairs or replacement parts so that assets can work properly until the value period has ende.
Benefits of Asset Management
Holistic implementation of asset management in all divisions or departments of the company will make the company able to reduce expenses and maximize revenue. What are the other benefits of asset management for the company?
Maintaining Asset Value
All assets are at risk of impairment such as damage or loss. The company in this case uses asset management to maintain the value of the asset to keep it high. The use of asset management can minimize the reduction in asset value so that the asset age is longer.
Increase Security
Assets in large enough quantities for a company certainly cannot be controlle individually and securely. By implementing asset management, companies can reduce the likelihood of asset loss or damage. Thus, these assets will be properly store, guaranteed and protecte.
Monitoring Asset Depreciation
Asset depreciation is one that companies need to be aware of. Asset depreciation can reduce the value of an asset in terms of function and the value of the asset itself. management is indispensable to make it easier to monitor asset depreciation. depreciation reports must be include in the financial statements because they relate to the company’s finances.
Avoiding Over-Buying
Asset management can control the purchase of a company’s assets. Thus, companies are smarter in preparing asset purchase budgets by determining the highest priorities and saving expenses.
Simplifying Budgeting
Budgeting in the form of construction, purchase of goods, maintenance of goods relate to funding is much more flexible with asset management. This condition also makes the company know which assets still need maintenance or renewal, which cannot be renewe at all.
Creating Risk Management
Asset management is unable to consider possible future threats from the company’s assets. Therefore, every company has done asset management, it will definitely be followe by the creation of risk management to complete it. Implementing risk management after asset management will help the company in managing the uncertainty of the assets that could occur in the future.
Risk management is a different thing from asset. Risk management is a method of analyzing, minimizing and eliminating risks to the company. When the company has implemente asset management, the company will also make risk management.
Asset Management Tips
Next we will provide solutions to problems that often occur in the company’s asset management, especially those in the form of physical assets. Not infrequently some companies are confuse when dealing with physical assets. Here’s the review.
Determine the Person in Charge of Reliable & Truste Assets
You probably have a lot of things in business that you have to think about. You can’t control all elements of your business, including your asset. Therefore, you should determine employees that you can trust and rely on as the person in charge of the company’s assets.
If your business is small in scale, then one or two people alone is enough to be responsible for the asset management of your business. However, if you have a large company, then you need to have a team that is focuse on managing and maintaining your company’s assets.
Understand the Lifecycle of Your Assets
You need to know the life cycle of your asset, from when you bought it to when the asset was no longer able to function. Predict how long each of your assets will take. This will make it easier for you to determine when you should do maintenance. By estimating the life cycle of your assets, you can also make purchases more wisely. For example, you can choose a computer whose service life is longer (durable).
Perform Asset Tracking Regularly
Without regular asset checks, your company can suffer financial losses. Because, you can be charge on the payment of taxes, insurance, purchases, and maintenance of assets that are not actually necessary. You could be paying taxes on assets that have depreciate or are no longer in your possession. You will also be trouble when the amount of your assets turns out not enough to meet the demands of your customers or clients. Therefore, it is very important to know the number of assets you actually have and the number of assets liste on your books.
Know The Depreciation of Your Assets Well
It is very important for you to know the depreciation or depreciation of your company’s assets. Know which assets you are not worth using, then find out the cause. Maybe all this time you do not know that there are many items that have been worn out, but still use by your employees which certainly hinders their productivity. Therefore, you should do a routine depreciation calculation so that you know which items should no longer be use and when is the best time to buy new items.
Use Automate Asset Management Solutions
Managing assets manually will only take a lot of time, effort, and cost without getting commensurate results. To optimize your company’s, you should use automate asset management software. Use software that has features that automate your asset management process, which consists of asset monitoring, depreciation checking, maintenance scheduling, contract management, cost analysis, and creating complete and accurate asset reports.
Well, that was the explanation of asset management. If you have a company, no matter how small the scale, it is necessary to know this so that your assets are more organize and neatly recorde so that they can minimize unnecessary expenses. Hope it helps!