Guide To Asset Management In Business
A business organization is established such that it has a virtue to possess a lot of assets. Each asset of a business structure comes with a cost of a lot of investments. The investments are not only from the business firm which possesses the assets, but the investments is also derived from huge amount of loan from the local as well as the international market and a handful of private investors who are called as the shareholders of the business groups. Such being the diversified nature of the investment of the assets of a business management, it becomes mandatory and an obligation on the part of a business organization to manage their assets and safeguard them in a manner which makes the utility of the assets to be long lasting and also protect such assets from theft, robbery, tampering and irrelevant of usage of those assets for a purpose which does not serve the business. In the article to follow, we are going to discuss the various aspects of managing the assets by a business organization and the steps that are taken by businesses to safeguard such assets.
What is asset management for a business organization?
The managements of assets which are in the physical form involves costs that are related to their selection, maintaining them, their inspection from time to time and also the renewal of assets with a business organization when they become old and are rendered out of use. This plays a key role in the know-how of the performance aspects of the business corporation in determining the costs involved in the operation. Also, the industries which operate on the basis of their core business groups, for them they are a matter of getting to know the status reports of their profitability. Asset management can be rightfully put up as the art and science that involves the making of decisions which serve right for the business groups and also asset management deals with the optimization of processes that are involved in any business.
Asset management vs. financial management
Asset management pertaining to a business is not to be confused with the management of their financial assets only. In business sense, the aspects of asset management involves maintaining details that are relevant to the assets of the company, it includes every asset of the business right from the personal computers used by the employees, tools involving machines for manufacturing sector, desks, tables and the chairs, to the vehicles that are used by the business organization for getting the employees and the executives from home to the office and back. It is most relevant when such management skills are used in dealing with the assets which generally tend to have a life which can be termed as short, fixed nature of service life and the depreciation of value that is encountered for these assets in their own life cycle. Perhaps what can be included in the assets of the company are their employees and the stationery that they use in a day to day basis.
Role of the business management software
There are two categories of assets that are possessed by a business organization. Those are the physical and the non-physical assets. Any type of business organization that is involved in the industries related to manufacturing, physical sales of their goods and services, distribution and selling of their resources possess both these categories of assets described above. There is a process involved in selecting the right kind of equipment for the job which is after the thorough examination of the requirements of the client or the customers. After this so called selection procedure, there is another process which involves the maintaining of these equipment?s which is done to endure that the costly equipment?s purchased by the company are in the working order for a time span of as long as possible and then getting it replaced in a organized manner. The processes like these should work in coordination and should produce as less disruption as possible amongst each other. This calls in for a key task in the management of assets.
For all the processes described above, the software that is specifically designed for the purpose of asset management comes into for a rescue. The asset management software, so as it is called, helps with all the above tasks by keeping a log of all the assets that you want to set for monitoring. You can feed in the details of the service schedules of the equipment on the priority basis. You can input the records related to the maintenance, the value that is depreciated and the time and date on which these need to be scheduled for replacement. The software can be programmed such that it can give you a pop up warning for any of the events that you need to be reminded of. With the help of these, you can always keep yourself up to date of any regular cycles to be maintained for the repair and renewal of the equipment.
Any software that provides assistance to your business needs and goals is only good to the extent of the data that is fed into it or perhaps the data that it can withhold. The information that is stored into it for them it is essential to keep the details of all the assets such they are at their latest. This can be done either by the physical inspection of the equipment or by ensuring that the various departments that are involved in maintaining that equipment have good set of communication strategies between them within the business organization. It is wrong and unethical if, for e.g. the account department does not inform the asset management department about them throwing away the broken desk and still accounting for the same. The records that are withheld within the software will be rendered inaccurate and the desk for replacement will not be ordered.
Asset management software that is recognized as well can be of an assistance that is invaluable for the business organization when it comes to the case of emergencies and crises that is faced by the business during irrelevant times. It can be useful in listing the various assets of the company and the resources available there in present at different locations and make it possible for re-routing those resources and goods in case of the emergencies.
Intangible assets are the ones listed as the non-physical, valid for a longer duration and assets those are non-monetary. They include details such as patents of the business, the accounts to be received etc. There should be proper licensing terms for the usage of this asset management software. Knowing what software is installed on the computers and its terms and conditions for licensing could save you a lot of time when your business is selected for inspection of these licenses. It helps in control of viruses through programs installed by your employees.
Asset management software ? types
These encompass software which requires hardware, software and networking infrastructure to be presently installed before its usage. They thrive on a good operating system which is specific to the platform which they run on.
The data that is collected is stored in such a way that is provides ease of access and analyzing the reports generated then.
How to choose the asset management software?
First a feasibility study on whether you actually need asset management software needs to be done. Big companies go for Management of Asset Performance (MAP) for conducting such types of studies. This enables the business organizations to analyze the main areas that are related to functions of asset management. This also goes hand in hand with the maintenance that is to be identified for the purposes related to opportunities in future for any scope of improvement. You have to avail a third party unit or you can do it all by yourself. When you feel the need of considering the right kind of software for the business that you are conducting, you need to take care of the following aspects:
You need to identify the key performance parameters related to the software. You need to make a study of the cost and the benefits that will serve your business through the asset management suite for your business purposes.
The owners of the business need to make a detailed study of what are the functionalities provided by the asset management suite and also the non-functional requirements like the performance, security etc. This can be done by reading the manuals and other related documentation.
You need to test the software for a number of users working on it at the same time.
You need to check if you need to upgrade your systems or the software provides backward compatibility. Can the required software be used on the new machines that will be introduced in your business?
Thus we have seen the various practices that need to be followed in the area of managing assets of your business. Follow these steps wisely to keep a monitoring eye on the valuable assets to your company.
More business articles
- Guide To Cutting Costs In Business
- Guide To Better Cash Flow In Business
- Guide To Reduce Debts In A Business Organization
- Guide To Choosing The Best Credit Card And Debit Card For Small Business
- Guide To Calculating Your Working Capital Needs
- Guide To Choosing The Right Accounting Services For A Business
- Guide To Using Trade Credit To Boost A Business
- Guide To Finding A Payroll Processing Service For Your Business
- Guide To Hiring Employees For Your Business
More business guides
Building And Construction
Credit Card Merchant Services
Energy And Environment
Food And Beverage
Home And Garden
Travel And Transportation