What is an asset?
It is anything a person or an entity owns. It can be tangible or intangible and long or short-lived in nature. Asset management is not just a system but also an ideological process. It involves managing assets in a way that enhances and increases them. This is because the state of a business’s assets tells a lot about its performance to many of its stakeholders. This is because a more well-managed and promising the future of a business, the better will its assets position be.
While doing asset management it is important to realize that an ideal asset position does not mean having maximum asset, but it actually means having the most optimal asset s position given its other resources a lot of assets can mean that either company has too much tied up capital in it or has too little. This ideal position varies amongst companies and industries. Some common examples of assets are as follows:
- Goodwill
- Land and building
- Fixtures and fittings
- Machinery and equipment
- Inventory of raw materials, work in process, and finished goods
- Account receivables
- Cash at bank and cash at hand
A favorable position of these attained through proper asset management can impact stakeholders’ decisions in many ways, for example:
- A potential lender deciding whether or not to lend
- A potential investor deciding whether or not to invest
- A potential lender deciding whether or not to work for it
- How threatened or insecure the competitors feel by it shape the steps they take to push the firm out of business
- Governmental body deciding whether or not to support it through its various schemes
- The term and conditions its stakeholders negotiate with it given its relative bargaining power
How can Aspire Analytica help you?
Our system can help you better manage the inflow and outflow of assets to help your business maintain and sustain a stable position of its assets. It also helps the management figure out if the company is growing way too quickly or slowly. It also keeps business’ liabilities under check. It does so by sending alerts when their positions reach a level that was predetermined by the management.