Asset Management refers to the systematic approach to developing, operating and maintaining a particular set of assets or a client investment portfolio on behalf of an individual, organisation or entity.
Asset management considers a variety of different specific variables, including the asset holder’s expected financial return and asset acquisition preferences. This can help asset holders meet their long term financial goals and objectives much faster.
However, manually tracking assets can prove to be tedious and inaccurate. Therefore, asset management software can help methodically collect, track and present asset data and information. The fixed asset management software market is expected to grow to approximately $5.2 billion by 2024.
Importance of asset management
Most companies, non-profit organisations and government agencies are required to provide detailed reports regarding the acquisition, utilisation and maintenance of their financial assets to comply with rules set by regulatory bodies.
Therefore, many organisations can take advantage of asset management software to access a central cloud-based database so that all the financial information regarding their current assets can be easily maintained.
2) Calculate life cycle costs
When managing long term assets, it is vital to accurately calculate the prospective hidden, the total cost of ownership expenses such as maintenance costs during an asset’s entire life cycle. These calculations help you effectively gauge whether or not the acquisition of an asset will be profitable. Asset Management can help keep track of past and prospective expenses to calculate life cycle costs accurately.
3) Asset inventory
You need to be fully aware of all the different assets you possess. Else, you will not be able to manage them effectively. However, keeping track of the changing value of assets manually can be time-consuming and lead to inaccuracies. Therefore, many organisations use asset tracking software to track all the different particulars of an asset. And normally they use a single software platform.
4) Long term financial planning
In order to gain significant financial advantage from the acquisition of assets or investments, you must exercise the use of long term financial planning. Without a holistic and comprehensive financial plan in place, assets can depreciate. This results in an overall financial loss for you, as the asset holder.
Asset management can help an organisation create an all-inclusive financial plan regarding the acquisition, utilisation and maintenance of a particular financial asset so that the asset holder can benefit from it more in the long run.
What is the Most Efficient Asset Management Platform For Your Business?
Crust’s low-code application development platform “Corteza” can help you accurately and efficiently track and keep tabs on various assets. Try a demo so that you can revolutionise your organisation’s asset management.