15 Sept 2021
Keeping on top of how many assets a business has is key to the ongoing success of a business. Knowing how many assets a business maximises the value and delivers the best results for stakeholders, as well as helps save time and money. We explore why asset management is important for businesses.
Assets are a way for businesses to really maximise their value for other investors and stakeholders and having a management plan helps the daily operations for businesses. Available in a wide range of fixed and liquid assets, every company has assets in some form. It’s really important to keep on top of them to benefit from their value.
Here are 5 reasons why asset management is important for your company to do;
Helps optimise operations - The first key point is having a proper asset management plan in place really optimises the daily running of your business. From resources, planning and even turnover, a good management plan can even improve many other areas of the business too.
Reduces risk from theft - Having good asset management in place is also a great security measure as it reduces the chances of theft in a business. Having proper accounting for asset recovery will mean your business s won’t lose assets and can maximise your returns too.
Helps businesses have assets in different locations - Having an asset management plan also really helps businesses who have assets in different locations around the world. An up-to-date plan can quickly create an inventory for any potential investor to look at and may even be useful if an insurer asks your business to produce one.
Helps remove ‘ghost’ assets - Ghost assets are those that have been lost over the years or even stolen and might still be on your records if you haven’t updated your asset lists. Having an asset management plan in place helps remove those ‘ghost’ assets that no longer exist and gives a much better view of assets.
Helps create a risk management plan - An asset management plan also includes understanding the potential risks to your business and helps you to create solutions to avoid them. A risk management plan is great for helping you spot risks that you may not otherwise have identified.
Asset management is one of the most effective ways to help your business stay on top of its assets and reduce the risk to your business whilst also saving money. A good plan is one of the most important aspects of a company’s daily operations and can mean the difference between you maximising value and missing out on potential financial opportunities.
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