The Importance of Asset Management

Company has asset which are not only limited in the form of cash, land, or building but also intangible asset which at present vary in various types. Moreover, the company which runs its business in a different field such as mining, banking, agriculture, automatically has different types of asset.

Asset management is well-known as the term of organizing asset for increasing the company’s benefits. The stage of conducting Asset Management are as follows:

1. Planning the company asset needs

in the initial stage, creating a plan for company asset needs is very crucial to understand what asset needs by the company and prevent excessive expenditure. Moreover, if you want to create a good plan, you can observe the previous asset needs, then relates it to the current situations.

2. Obtaining and Inventorying Asset

After creating an asset requirement plan, the next step is obtaining its asset either the company’s funds or other party’s assistance. Then, the asset stored by putting particular codes. Do not forget to record the quality and quantity of the asset.

3. Doing the legal audit asset

the third step is conducting the legal audit towards the asset status, procurement system and procedure, also diversion system and procedure. Subsequently, you have to identify the legal issue which will emerge in the future about asset acquisition as well as asset diversion.

4. Calculating the asset value

Asset valuation is required to know how much wealth the company has and which asset should replace.

5. Operating and Maintaining Asset

If you already know how much wealth your company has, you can utilize the asset for the operational activities. However, it is inevitable about the decrease function of the asset. Therefore, maintaining and repairing the asset is needed to retain its function as expected.

6. Removing and Reconditioning Asset

Removing the asset happens because according to company needs it is not necessary anymore, however, the asset which experienced a quality reduction, the company can do reconditioning such as repairing the spare parts or other rejuvenation activities.

Asset management process is not simple, because it is not only taking notes about what asset owned by the company, but also many other activities. However, it turns out to be significant for the company. Below are some reasons:

1. Guaranteed Asset Security

Usually, because the company has many asset, controlling them from asset theft or the asset loss caused by human error one by one would be difficult for the company. Therefore, with Asset Management, company asset will be safely protected.

2. Avoided Excessive Asset Purchasing

Asset requirement plan in Asset Management helps your company to prioritize asset purchasing, so that excess expenditure to buy asset can be avoided.

3. Maintained Asset Value

Asset value can experience deterioration because of damage or loss. However, by carrying out the proper asset management asset value can be preserved, so that the age of the asset can be longer.

4. Monitored Asset Depreciation

The most important thing that should be concerned when you have the fixed asset is depreciation. Asset management is highly recommended to facilitate monitoring asset depreciation since procurement activities are carried out.

5. Budgeting Becomes Easier

Construction budgeting, purchase of goods, and maintenance of goods will be easier to do with the implementation of Asset Management. Moreover, Asset management also helps the company to identify which asset should keep or replace.

Although performing asset management is arduous, nonetheless with the benefit that can be acquired, you can take into consideration to implement it in your company. You can contact the expert to execute optimal asset management.