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.