Why should I invest in asset management?
21 September 2016
While financial and human resources are well planned for and reported on, some organisations either don't value the need to know the assets that they have or simply do not invest the time to do so. Understanding the physical assets of your business is a valuable planning tool for any organisation, and can present many cost saving opportunities.
The development of an asset register is key to asset management. No matter the number of assets that the business holds, an asset register keeps asset information such as life-cycle and maintenance schedules that can assist with asset planning and performance monitoring. An asset register is the first step towards ensuring that a business asset management program is effective.
Maintaining an up-to-date asset register can allow a company to keep an eye on the overall value of the company itself while also assisting businesses to uphold maintenance schedules and compliance.
What should you include on an asset register?
An asset register is a comprehensive guide to all assets owned by the business. This can include IT and telecommunications, cars, manufacturing equipment, and even down to the racking in your warehouse used for storage.
O'Maras Valuers & Auctioneers create comprehensive business asset registries by looking at a wide range of aspects including:
- useful life;
- effective age;
- remaining useful life;
- current condition;
- any maintenance program in place;
- life cycle costs;
- project replacement timings.
The experienced team at O'Maras can assist you with establishing an asset registry, ensuring that it meets accounting standard requirements and legislative compliance. Physical asset management can give companies an idea as to what they actually have and the value this may present to the business.