- 1 Types of Fixed Asset Management for any Business:
- 2 Why is it Important to Have Assets?
- 3 Benefits of Asset Management:
- 4 Principles of Asset Management:
- 5 Maintenance of Asset Management:
- 6 Types of Asset Management:
- 7 Fixed Asset Management:
- 8 Asset Tags:
- 9 Developing a Fixed Asset Management Plan:
If you are planning to start a business in any domain, you need to know the major requirements of running a business successfully. Initially, you will initiate from a startup always and as the progress grows in your business, you can further expand it by opening multiple locations of it.
Types of Fixed Asset Management for any Business:
For any type of business, there are generally two kinds of assets that are tangible and intangible.
1. Tangible Assets:
Tangible assets are those assets that are holding a fixed monetary value and physical appearance. For example, the vehicles and machinery used in your business fall under the category of tangible assets.
2. Intangible Assets:
An intangible asset is an asset that you cannot touch. Intangible assets stand in opposition to tangible assets that have a physical nature. For example, intellectual property of a business, its logo, and copyright design and content as well as the company’s brand, etc. They have two main characteristics that they are nonphysical and secondly, they are not financial instruments. They also include assets like bank accounts, stocks, bonds, insurance, etc.
Why is it Important to Have Assets?
Assets are important because they hold particular financial value and they have clear financial benefits for a company. They can also highlight people’s social relations and life-cycle. Asset building policies can go beyond consumer choice and financial goals to consider their effect on deteriorating social inequalities.
Benefits of Asset Management:
An organization will realize multiple benefits while implementing the Asset Management System. Some of them are listed below:
- Good asset management results in better business decisions.
- It also improves regulatory compliance.
- The integrity of the system is long-term rather than short-term.
- It helps you save the cost hence making your system cost-effective.
- It also ensures eligibility for federal funding.
- It enhances the overall reliability of the business which makes your business a good choice for the customers.
Principles of Asset Management:
The principles of asset management are as follows:
- Output Focus.
- Level Assurance.
- Learning Organization.
Maintenance of Asset Management:
It can be defined as “a continuous process improvement strategy for enhancing the availability, safety, longevity, and dependability, etc.” For example, systems, facilities, equipment, and processes.
Types of Asset Management:
- There are 7 types of asset management which are shown below:
- Fixed Asset Management.
- Financial Asset Management.
- Enterprise Asset Management.
- Infrastructure Asset Management.
- Public Asset Management.
- IT Asset Management.
- Digital Asset Management.
Fixed Asset Management:
The Fixed Asset Management System allows you to track, protect, and value your company’s tangible assets over time. You can use serial numbers for asset tags so that you can manage the fixed assets quite easily.
Asset tags are labels with bar codes that contain information about each asset and point to a definite physical asset at a time. You can monitor your fixed assets by using a bar code reader which is mobile. It also helps you in creating beneficial reports with the help of the software.
Objectives of Fixed Asset Management:
The main objective is to achieve improved financial performance and to reduce the life cycle’s cost of the fixed assets of an organization. Not only this but also to achieve the best possible ROI (return on investment) to preserve the amount of investment efficiently.
Developing a Fixed Asset Management Plan:
Here is a step-by-step process of developing a fixed asset management plan:
1. Ensure the completion of an asset inventory.
2. Ensure the accurate calculation of life-cycle costs.
3. Set the standards and levels of service for your customers.
4. Implement cost-effective management.
5. Execute the financial planning for long term budget.
Why Fixed Asset Software has become Mandatory?
To successfully cater to all the demands of a fixed asset management system, the software is required called as Fixed Asset Software.