Asset Management and its Role
Asset Management – is all about monitoring the status of prime property of an enterprise. It could be equipment, computer, generator, or furniture. It is applicable to both Movable as well as Immovable assets. Asset management is required to ensure that the company adheres to the financial and tax laws of the land. Companies are therefore required to estimate the availability and status of an asset for financial reporting. Banks require 3rd party audit reports of assets for lending considerations.
Asset management starts with the coding of the asset, periodic status verification (in use, standby, under repair etc), making decisions regarding upgrading/replacement & meeting all required accounting and environmental standards.
The significance of Asset Management for an Enterprise:
Tracking assets is an area of concern for every company. The typical challenges faced by a company regards to assets are:
- Location (not where it was reported earlier)
- Quantity (numbers lower/higher than what is shown in inventory)
- Condition (status seem to have changed, from working to junked)
- Maintenance (has gone out of premises for repair and maintenance)
- Depreciation status (is a sunk cost asset, or asset with remaining depreciation)
- Assets spread across multiple geographic locations
Tracking of assets without sophisticated devices (such as Blue tooth enabled barcodes or RFID tags) and methods (inventory sample or Asset population reviews) experience lots of challenges. CEO and CFO may be exposing their company to legal and procedural risks if shortcuts are adopted. To effectively manage all assets a company owns it must
- Have the comprehensive list of all assets.
- Know the current location and status of the asset.
- Know which employee owns or is associated with it.
- Know if it’s gone for repair when it would be due for return.
- Scheduled maintenance of the assets
- Cost and depreciation of each asset.
Commonly tracked assets
Companies from financial reporting perspective commonly track:
- Plant and Equipment
- Fixtures and Fittings
- IT / Communication equipment
SuperSeva Asset Management Services:
SuserSeva Asset Management Services are a comprehensive mix of technology and human intervention. Superseva asset management service includes state of art devices and tools in the hands of well-trained personnel to capture the right and reliable data.
At SuperSeva, we use following systems and tools to capture and report data
- Asset Tracking software: can capture the details of all existing assets, supports report creation and reviews
- Mobile handhelds – devices allow you to capture data from the nook and corners of warehouse store or in the in situ.
- Bar-code/RF ID – for unique tagging and identification purposes.
Our engagement models for asset management services are:
- Support for financial and asset audit
- Deploy asset management software, train and support adoption
Companies engaging SuperSeva Asset Management Services to benefit from:
- Productivity – Collect data faster in greater detail.
- Accuracy – Eliminate human error.
- Compliance – Reporting flexibility with more accurate records.
- Accountability – Enforces personal responsibility and accountability for company property