Keeping track of the assets of a company is an important task that can save companies money and time. Asset management is the process of maximizing the assets of the company to provide the best returns to stakeholders. More often than not, it involves asset recovery as well. Businesses have a wide range of assets that include fixed and liquid assets. It is important for a business to be able to manage its assets, and use them to get the maximum possible returns. 

You can’t really go far ahead in your business venture without proper asset management. Following are some of the reasons why asset management is crucial for your business enterprise:

Asset management allows the organization to keep track of all their assets. It can tell where the assets are located, how they are used, and when changes were made to them. The data from the asset management solution can ensure that asset recovery will lead to better returns.

The company can easily create an inventory report that might be required by some insurers or lease financiers.

Asset management can also be used to make sure that the amortisation rates are accurate. Regular assessments of the assets will ensure that the financial statements of the business are accurate.

Asset recovery is automatically reflected in an asset management system. Once assets are scrapped or sold, the assets in question will be removed from the records and books of the business. Related assets, such as consumables and spare parts, are written off or sold to free storage space.

During the operational phase of the life cycle of an asset, a company can face under maintenance or over maintenance problems. Maintenance is a business expense that can cut into the profits of the company. Overdoing it can bring significant costs. On the other hand, under-maintenance can lead to reduced productivity.

Asset management allows an organization to understand the capabilities of its assets, and how they can be operated in the most effective manner.

Asset management also includes the management of the risks connected with the use and ownership of the assets. Proper assessment of the assets can help to identify the risks involved, and come up with a solution to avoid them.

8) Optimisation of Operations

Proper asset management can help optimise your operations that include the planning, resources use, and in the implementation of the management program.

There are times when items that have been lost or stolen are still in the inventory records. These are known as ghost assets. More often than not, ghost assets were items that have been inaccurately recorded.

With the use of asset management system, incidents of thefts are lowered. Proper accounting of the asset recovery process will ensure that the company maximises the returns with no items lost during the process.

This is why asset management is an aspect of your business which you should never overlook. It is always advisable to take external help to manage your business assets. You can choose to hire a financial advisor to help you with this task. Be transparent with your advisor and give them all the material information about your business and its operations. If you don’t wish to hire an advisor, you can approach specialised agencies that provide such help to businesses. Not only do these agencies help you in asset management, but also in various other areas such as office acquisition, lease management, business rates management and other similar aspects.