ASSET MANAGEMENT BY CURATOR
Assets are especially essential parts of the business equation. Although the concept of an asset is broad, it refers to anything that can be controlled and used to either store or produce more value. These include the physical and intangible assets that your company owns.
Tangible assets are physical items such as machines, tools, real estate, vehicles, and more. In addition, intangible assets include intellectual property (IP), databases, operational data, software license agreements, and organizational capital. These assets have a finite value.
The idea of spending time and money on protecting assets that don’t generate any revenue may seem like an inefficient use of resources. But as soon as a business grows and scales, the importance of asset management increases proportionally, and ignoring your company’s assets can turn into a financial nightmare.
When properly managed, assets can contribute to your company’s growth, financial success, and encourage sustainability. However, poor management practices can hurt your bottom line and potentially hinder or even destroy growth opportunities.
Asset management ensures that your company can continue to grow and expand with the correct use of assets. It will help keep your business on track, manage risk, and more.
The concept of asset management isn’t new or revolutionary, but it has powerful and important applications for businesses. When executed correctly, asset management solves the most pressing concerns plaguing an organization, allowing it to grow more efficiently.
Asset management is a key part of an effective business management strategy. Unfortunately, it’s often overlooked as a mundane task that’s not very exciting. However, this perception is wrong. Asset management is a critical component of any profitable business, and it provides value to both the organization and its shareholders.
Asset management involves people from all business areas and divisions, from COOs and managers to auditors and engineers, and even IT specialists and equipment operators.
Why is asset management
important?
Businesses that invest in asset management reap various benefits. Not all of these benefits are linked to financial gains. Real-time asset tracking produces a constant stream of data, fosters responsibility, and keeps planning and equipment maintenance on track with the help of a suitable asset management system.
Tracking the assets (such as fixed assets) with the help of an with the help of asset tracking software eliminates some of the drawbacks of older monitoring systems, such as depending on erroneous data and having no means of knowing where assets are or how they function. In addition, asset management provides businesses a 360-degree view of the entire life cycle of the assets.
Asset management software also automatically save time and resources. Furthermore, enhanced scheduling and automated warnings reduce capital expenditures and save money on maintenance. Thus, total operational expenses decrease while planning efficiency improves.
Such a system facilitates the adoption of a risk management strategy and enhances regulatory compliance. In addition, the accuracy of depreciation rates and asset valuation is also improved.
What is an asset manager?
An asset manager is someone who manages a specific group of assets. The asset manager’s goal is simple: to save money through tracking assets and bring more organization to reduce waste. An asset manager is responsible for developing and executing an asset management strategy, ultimately managing the assets entrusted to them.
Traditionally, businesses have outsourced asset management to asset management companies who act as fiduciaries. However, there has been a slow and steady shift toward in-house asset management with the help of asset managers.
Asset managers employ researchers and analysts responsible for tracking asset performance, providing sound investment advice, and taking care of other tasks that could affect the performance of the assets. In particular, asset managers look for high-growth investment opportunities before anyone else.
Asset managers should know various departments: administration, finance, capital, operations, and have a thorough understanding of a business’ stakeholders and strategic and operational procedures.