Notesale: Turn your study into money

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ASSET MANAGEMENT AND ITS IMPORTANCE
Asset management remains to be one of the primary concerns of organizations all over the
world because assets drive businesses
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Asset management process also helps businesses derive more value from
an asset and achieve business goals
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Every company needs to keep track of its assets, that way,
its stakeholders will know which assets are available to be employed to provide optimal
returns
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Fixed assets- assets acquired for long-term use
2
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Physical Asset Management
Physical asset management stands for the process of handling things like fixed asset
management, inventory management, infrastructure, and public asset management
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Financial Asset Management
It refers to the process of managing procurement, developing an investment strategy,
controlling budget and costs, handling cash, bonds, and stocks
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Contractual Asset Management
It streamlines processes like IT asset management, digital asset management, contractual
maintenance, and management of intangible assets
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This a
procedural activity that involves certain key steps
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If he is not aware of the exact number of assets in his inventory, then
he won't manage them effectively
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Step two is a computation of lifecycle costs
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Many
company owners make the mistake of calculating only the initial purchase costs
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After computing the lifecycle costs the next step is to set levels of service
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In doing so, a firm's owner can then determine the operating maintenance and
renewal activities needed to keep the assets in healthy condition
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Ideally, the asset
management process that a firm owner adapts should easily translate into long-term financial
plans
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Importance of Asset Management
1
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The process makes it easy for organizations to keep track of their assets, whether liquid asset
or fixed
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2
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In this way, a firm will always be prepared to
manage any risk that comes its way
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Removes ghost assets in the company's inventory
With a strategic asset management plan, the firm's owners will be aware of the assets that
have been lost, damaged, or stolen and will eliminate them from the books
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Improving compliance

Government agencies, non-profit organizations, and companies are recommended to provide
comprehensive reports on how they acquire, utilize, and dispose of assets
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