Assets are the largest investments most companies make. Every company therefore needs to keep track of its assets, so that stakeholders will know which assets are available to be employed to provide optimal returns. Asset management is the process of tracking and maintaining the organization’s physical equipment and assets for purposes of asset maintenance, asset tracking & preventing losses. Asset management is an important part of accurate financial reporting.
Asset management typically incorporates the following tasks: overseeing and tracking fixed assets, monitoring fixed assets in multiple locations, minimizing maintenance costs, helping to increase operational activities, and keeping a record of assets (so you’re aware of theft or losses of assets).
Businesses should implement asset management for the following reasons:
- Business owners will know where assets are located, how they are being used, and whether changes have been made to them. Recovery can then be done more efficiently leading to higher returns.
- Assets are checked regularly therefore depreciation and amortization rates recorded in financial statements are more accurate. Establishing the highest standards of depreciation accuracy and best practices in fixed asset management will pay off in the form of savings and efficiency.
- Risks arising from the utilization and ownership of certain assets can be identified and managed in in good time.
- Company owners will be aware of lost, damaged, or stolen assets and these will be eliminated from the books of account.
Carefully keeping track of your assets is a good way to protect your bottom line and ensure a positive enhancement of capital over the asset lifecycle.
What should you expect from this service:
We will help you develop policies and procedures for tracking, monitoring, and disposing your assets in the most effective manner as well as calculating depreciation.
To provide low-cost, outsourced
finance and accounting services
to our SME clients within a
framework that assures control,
quality service delivery, and high
Have any Questions?
We provide low-cost, outsourced finance and accounting services to our SME clients within a framework that assures control, quality service delivery, and high performance.
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