Why Asset Management is Important for a Business

There are two types of assets in any company: fixed and current. Fixed assets are the ones that are available for long-term use and current assets are the ones used for a short span of time. Asset management refers to the process of developing, operating, maintaining, and selling all types of assets of a firm or business in a cost-effective manner.

Importance of Asset Management

Every business needs to keep a track of all the assets it owns as it helps stakeholders get a clear insight of their availability. If done properly, asset management can help optimise the operations of a business, including the planning, resources, their use, etc., and derive greater ROI. Other than that, asset management is also important because:

It helps in the managing of assets from different locations. An organisation can also create an inventory report that might be required for other purposes.
With asset management you can make sure that the amortisation rates are accurate. If assets are managed properly, it ensures that the financial statements are also accurate.
Implementing a risk management plan becomes much easier. When all assets in a business are managed properly, It is a lot easier to identify risks involved, and come up with a solutions to mitigate the samet.
With proper asset management, you can lower the chances of theft incidents taking place in your business.
It helps remove ghost assets in your business inventory. Ghost assets are the items that have been stolen or lost but are still present in your inventory records. Such items can cause conflicts in your records.

For larger businesses, with a larger number of assets, it is not feasible to manage all of them in-house. In such scenarios, an asset management service like the IBM Maximo Asset Management software comes into the picture. It helps with workflow process management and asset lifecycle management. And the best thing about this system, that it can be seamlessly integrated with any existing financial applications as well.

Comments

3 Best Reasons to Use CAFM System for Your Business

For companies and organizations, facility management is crucial in running their business successfully. Facility management involves monitoring, optimizing and maintaining assets, including equipment, devices, and infrastructure. CAFM, or computer-aided facilities management system, is changing the way facility management is done in a company. The software is used by facility managers to reduce costs, improve efficiency, and streamline processes. The CAFM system can be used in asset management in various industries, such as hospitals, manufacturing plants, office buildings, etc. The software comes with a user-friendly interface, assisting facility managers in planning, executing, tracking, and monitoring diverse business components. Here are some of the best reasons to use computer aided facilities management system in your business. Centralized Data Management In the conventional method, facility management requires handling a huge amount of data spread across...

3 Reasons Why Asset Management Software is Vital for Improving Work Productivity

Asset management encompasses the strategies and practices employed to effectively manage and maintain business assets. Tracking and monitoring company assets play a vital role in saving valuable resources, including time and money. Implementing asset management software offers the convenience of streamlined asset management processes and brings forth various benefits that contribute to enhanced work productivity. Mentioned below are three reasons why utilising asset management software is crucial for improving productivity. 1. Asset Tracking One primary advantage of utilising asset management software is the convenience provided to business managers in tracking and monitoring all company assets. This software enables managers to efficiently locate assets, monitor their usage, and track any modifications made to them. The valuable data obtained from the management software facilitates seamless asset recovery and enhances overall returns for the business. 2. Easy Handlin...

How to Set Up an Asset Management System - 3 Key Steps

The need for an asset management system in an organization has rapidly increased in the past few years. This is primarily due to its beneficial characteristics that allow a business to flourish in any industry. Asset management software helps in monitoring each asset, be it physical or virtual, throughout its lifecycle. Besides this, it helps in maximizing the potential of every asset that your company owns. Here are 3 key steps that can help you set up a reputed asset management system in your organization: Get Your Team On Board If you wish to set up a reliable asset system, it would be wise to get your team on board. This is an essential step because if your fellow team member or management department is not sure about its benefits, then it might get underutilized. It is your responsibility to educate all employees about the advantages of an asset management system. By doing this, you might even get a few suggestions and ideas on how to initialize it in a better way....

maximoesolution

Search This Blog