Asset Management Facts
Asset Management and Maintenance for a small to medium business will help to save money. It allows a business to better understand the value of the assets it owns, and how it generates income.
The top 5 facts are simple:
- Company profitability can be measured by how well you use your assets to generate income
- Maintenance of your Property, Plant & Equipment (PP&E) will save your business valuable money long-term
- To fully realise the value of an asset within your company, you need to track the entire life-cycle
- An assets value or depreciation bears no relation to how that asset was purchased, either by cash, loan or other
- You should be able to track purchase information, warranty details, item location and more with ease
It’s more than just common sense to track your assets and assess their value. From a financial standpoint, they are vital to making your business successful or not.
Knowing which assets are depreciating and at what rate contributes to business forecasting. Improving maintenance schedules to prolong the life of your assets is also vital.
Accentis Enterprise ERP software is a powerful business management solution. With Fixed Asset Management and Maintenance fully-integrated to other modules. Payroll, Manufacturing and Financial Accounting will ensure your business stays ahead.
Asset Management Fact #1
Company profitability can be measured by how well you use your assets to generate income
Using your company assets to generate income is how you make money.
Not only faulty assets are to blame. If you don’t even know what assets your company owns or where they are, that’s lost production value.
Asset Management is a balancing act of keeping the right amount of assets available to get the job done. Don’t sacrifice your business to assets that get abused and lost by staff who don’t care.
Use your assets to make money in the most efficient way possible, and in turn, profits will increase.
Asset Management Fact #2
Maintenance of your Property, Plant & Equipment (PP&E) will save your business valuable money long-term
Maintained assets will generate more income over their life time than faulty ones. By constantly having to repair or spend money on faulty assets, you’re wasting income.
Maintenance is a cost unto itself and also needs accounting. This includes the hours spent repairing an item to keep it running, but also scheduling regular checks.
Keep the tools of your business in the best condition possible to set you up to increase your profit.
Asset Management Fact #3
To fully realise the value of an asset within your company, you need to track the entire life-cycle.
Some items that your business uses are only useful for a handful of times. It’s not worth spending the money repairing them, or the nature of the work degrades their performance.
Knowing the life-cycles of each asset gives you a forecast of potential expenses.
An item that is costing your business too much money throughout its life-span is not worth owning. Unless that item is mandatory, there might the chance of purchasing a better model that lasts longer.
Asset Management Fact #4
An assets value or depreciation bears no relation to how that asset was purchased, either by cash, loan or other.
A business needs assets to generate income, that’s a given.
The value of that asset is the same regardless of how you paid for it. There is also no effect on the depreciation rate for these items.
An asset for the business is exactly that, an asset.
The means of payment that you purchased the asset are important. But only for your financial accounting records so you can balance your accounts.
Asset Management Fact #5
You should be able to track purchase information, warranty details, item location and more with ease.
Asset Management is exactly that. The entire management of all your assets, not just a few details here and there.
Accentis Enterprise gives you functionality to record where you purchased an item from. Warranty information should always be kept up to date, as otherwise you won’t be covered.
You probably think you can handle of this information in a spreadsheet, but think again. Do you really want to?
How do you depreciate something in a spreadsheet, and what factors can you control?
Assets make your business the income that pays for your employees and keeps it running. You need a system that’s capable of managing every record so it’s effective and efficient.
The fact is, managing your assets is not always a simple or enjoyable task. But it is a vital part of your business. One that helps you generate income and increase profits, so it pays to do it well.
Accentis Enterprise includes the Fixed Asset Management and Maintenance module for this reason. It works in conjunction with many of the other modules to help you understand your business better.
If you’re looking for an ERP system to manage your business in a more efficient manner, you can’t look past us. We’re experienced, Australian owned and developed, and we offer exceptional support the world over.
The facts about asset management that we’ve shown here are applicable to almost every SME. By not using a solution such as Accentis Enterprise, you’re lacking adequate reports and analysis.
Isn’t it time you factored Asset Management and Maintenance into your business requirements?
Start a conversation with us about it today, and we’ll show you even more facts!
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