Physical Asset Management

Physical asset management is the practice of effectively using the physical assets of the company. Many companies have an in house department taking care of that but in some cases, an outside party is called in to help them out.

For this to work, the team has to know first hand the assets of the company. To prevent duplication, it should point out the depreciation value and the utility in the process of production. This process is better known as cost analysis as this will increase economic life and reduce component failures such as the incidence of theft and mistakes in the procurement of supplies and equipment.

It can also assist management in tax planning and forecasting business solutions which could save the company millions of dollars.

For instance, production suffers if machines break down frequently. This is normal if the machine being used is already old. The company can try to repair it but if the cost is much higher than a brand new one, then perhaps they should try to sell this at a reasonable price then use the money to buy a new one.

The same goes if a company has hundreds of stores and only a few of them are making a profit. Since the unprofitable ones are not really bringing in revenue, perhaps it will be a good idea to close them. You must first identify which are constantly unprofitable and it might be a good idea to find out whya and if the situation can be corrected.

This is something that a lot of companies are doing now due to rising costs of fuel and the economic slowdown. Rather than filing for bankruptcy, they would rather slash a few thousand jobs and close down stores. Some companies that have done so include Starbucks, American Airlines, JP Morgan and a lot more. Remember here that workers are also consumers and when they lose their jobs, they tend to consume (buy) a lot less. Other members of society may decide to punish those who lay off workers by not buying their goods or services. The other option is for some companies to merge just to stay afloat.

The bottom line is that physical asset management gives the company an idea as to what they actually have. This will help prevent them from missing out on opportunities when they present themselves.

One way of keeping track of the companyís assets instead of doing it by hand is by investing in asset management software. This will allow those in management to gain access to it whenever it is needed via the companyís intranet.

This can be done by bar coding everything similar to what is done in the supermarket. This will enable the in house team to just scan the item which not only increases accuracy but helps to save time on repeated inventories.

There are four stages which make up the physical asset management cycle.

First is planning and procurement. Here the company sees what is available and then decides what more is needed. They will look at various suppliers and then buy the machine that is affordable and efficient.

In the second stage, those who use it have to use the equipment in order to maximize its productivity.

Third, is called financial management. Here, the company will see if it was worth getting the equipment. It also includes ensuring accurate tax, depreciation and other costs.

Fourth is disposal. If the machine is obsolete, it has to be replaced in compliance with environmental regulations.

Companies will be able to practice effective physical asset management by following the life cycle. Sometimes tough decisions have to be made in order for the company to survive.

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Online Asset Management Software

There is no doubt that asset management software is needed in todayís environment. But what if you want to communicate with other offices? For that you will need to invest in an online asset management software system.

Online asset management software is connected to an enterprise-wide network or the Internet by embedding special equipment that will allow maintenance personnel to track the functioning of the equipment in real time. Thus, you are to perform preventive maintenance measures and quickly take action when there are breakdowns. This also enables the company to manage their inventory from any location by using the web browser.

To give you an idea, here are some examples where online asset management software can be used.

Since this can be accessed remotely, it can help information technology personnel monitor the hardware and software installed on the enterprise network. Advanced versions of these applications can also help managers control the hardware and software applications on the servers.

Even advertising and media agencies have joined the bandwagon. This is because it helps the people in these companies automate the process of maintaining, marketing, publishing and viewing their multimedia gallery or store.

As for software product development companies, they can use this electronically distribute or manage the digital products they have developed.

On the human resources level, the online asset management software will help the HR department to track employee performance, manage talent and even identify star performers. This can also be used when they go out and attend job fairs so resumes can be stored.

Finance companies also use this so their clients are able to track their own financial assets especially stocks and mutual fund investments in real time. All the customer has to do is log in and then get the latest status on their assets.

Once a company has fully integrated the online asset management software, it will be easy for the various departments to talk to each other. It can detect the installation of unlicensed or unauthorized software, enhance helpdesk security and generate reports so this can be viewed and printed.

Asset management software provides analysis of data, which helps company to make new strategy plans for cash flow, helps in the efficient utilization of resources, and in turn increases the productivity of the company.

You can find online asset management software online. Most sites will allow you to download their program for a 30 day trial and then you have to buy it to continue using it. When you are shopping for it, compare their features and the price. Donít forget to read product reviews and blogs because how well it has performed or not has already had been tested by various users.

When you have found the right online asset management software program, make sure that those in the company are trained how to use it. This will prevent problems later on when data is sent back and forth.

Asset management even if it is now available online is still the process of designing, implementing, planning and maintaining the companyís assets. These include everything from infrastructure, plant, property, and human resources. Being able to access this from a remote location is just another way of checking on things if you are out of the office, while you are out of town, or out of the country.

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Most Common Problems with Asset Management

Asset management is replete with issues or problems that arise, regardless of the generation under which you are operating it. The good thing is that many people have already been open to sharing their experiences on asset management, which saves newbies to asset management time and energy from learning things the hard way. Here is a short list of the most common problems pertaining to asset management that every asset manager must know of.

Lack of updates in the evaluation

When there is a bigger team asked to deal with the asset management of the company, sometimes the updates are much more difficult to attribute to individuals. This is because, while there is rotation among the members, some parts may not be covered thoroughly. On the other hand, if too many people are assigning tasks to individuals without the updates specifically communicated among the different members, the updates will be much more difficult to establish.

Miscommunication among departments

This is the most common problem of asset management that involves human factors. The miscommunication can go from as short as missing one decimal place to having questionable discrepancies on file. The miscommunication is a great disadvantage because it involves lack of proper use for the different instruments made available for asset management.

Incompetence to Manage Assets

The technical competence to mange assets is also equally important. If one of the team members has not taken the time to train for the use of the equipment and the dynamics needed by the job of managing assets, the incompetence will result in disasters in the managing of assets. Inventory problems and management issues may arise, and in essence, it is still better to manage with a few high quality people than with many below average ones.

Lack of Technology Demanded by the Company

For example, you have all the competent people you need. But if you do not have the technology that matches their qualifications for doing to job, success will be much more difficult to achieve. You may get an above average performance from the people, but it will still be much much better if the technology matches the good skills of the asset management team.

Lack of support

When there is lack of support in any given endeavor, it is bound to fail. The same goes with asset management. The lack of support among departments may not be conducive for positive change and objective or honest inventory of assets. Where there are ulterior motives being satisfied among the ranks, the management of assets may not be as pure or clean as one would like. This lack of support may be remedied by strengthening the ties of the team members via enriching activities.

No balance in asset elements

The balance is the key to perfect asset management. A balance in the different categories and the figures that represent them in the charts are the core outputs of a good management of assets in an organization. A lack of balance means that there are some things that need to be modified, or that some people are out of shape for this activity.

Too little risks taken for growth

When one’s asset is much managed, there is also a tendency to eliminate all risks, even when in fact these risks are contributory to the company’s growth and yield good returns. Asset management must also involve taking calculated risks.

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Finances: The Importance of Creating a Budget for Yourself Part 2

Part 2.

 

To get you started with saving your money, to help relieve the stress and other issues often associated with debt, you will want to start by outlining all expenses that you must pay for on a monthly basis.

These expenses are ones in which you cannot go without paying, like rent, mortgage, homeowners insurance, auto insurance, auto loan payments,your utility bills, and finally, groceries.  These are the expenses that must be paid, no matter what.  If you have any money left over after all these obligations are met, you are fortunate.

Once you have a detailed list of important expenses, the next items are luxuries you have to decide upon. There is no right or wrong answer. You just need to remember that everything involves a sacrifice. So try to keep your long-term financial goals in mind when deciding on whether or not to spend money on these luxury items.

Such items include internet access or cable television.  If you are just looking to save money, possibly to put into a savings account, you should be able to continue paying these expenses without any problems.

On the other hand, if you are looking to dig yourself out of all of the unpaid debt that you have accumulated, it may be a good idea to go without internet access or cable television, if at all possible, even if it is just for a short period of time, to pay down that debt, so the interest doesn’t keep accumulating. Some credit cards can carry an interest rate as high as 30% and some sort cards, almost 50%.

There is no point in putting money into a savings account at 4-5% if you are paying 30% for debts.

You can also use your budget to determine how much extra money you will have each month.  You can do this if you regularly work the same hours or if your pay is salary-based.

Once you have totaled up all of the aforementioned expenses, you can subtract that from the amount of the money that you bring home each week.  Any extra is money that you may want to consider putting towards your debt or savings.  Once you are free of debt, then you can start to save.

We have other articles at the site on budgeting and on asset management and investing. The important thing to remember is to get out of debt as fast as possible, or never get into it. Then, once you are debt-free, you can start saving towards your long-term financial goals.

A budget is not meant to be a straight-jacket, but it will help serve as your road-map to a more successful financial future.

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Finances: The Importance of Creating a Budget for Yourself Part 1

Are you a debt-ridden woman?  Even if debt may not be an issue for you now, there is a good chance that it will become one in the future if you don’t keep an eye on your income and expenditures with a workable budget.

Whether you are in debt now, or if you are looking to prevent yourself from falling victim to it, you need to put a sound budget in place as soon as possible to start planning better for your financial future.

Before examining how you can go about creating a budget for yourself, it is important to understand why you need a budget.  As previously stated, budgets are a tool that can be used to make sure that debt does not become or remain an issue for you.

By creating a budget, you can track your spending, and make sure that your make it a priority to ensure that all needed expenses, like your car, insurance, rent or your mortgage, all get paid.

A budget also gives you the opportunity to examine how much extra money you have each month, money that you could put towards paying down your debt, or putting into a savings account to start working toward your long-term financial goals.

When it comes to creating a budget for yourself, you should be able to find a number of budget templates online. There are a couple of suggested ones here at the site as well.

While these free resources are nice, you may only want to use them as starting points.  You can get great ideas from them, but you may want to create your own budget. This is important because not all individuals lead the same lives or have the same expenses to take care of.

For instance, a budget template for those in New York City may not necessarily call for car payments or auto insurance, but if you had a vehicle, you will need these sections displayed on your budget.

It is also advised that you take the time to create a budget for each month of the year.  As previously stated, a budget allows you to account for what you spend on a weekly and monthly basis, but not all months are created equal.

For example,  you may have a ton of family birthdays in August, or have to go see your family for Thanksgiving every year, which will mean budgeting for travel expenses. Christmas is always a very expensive time of year, and can get really out of hand if you don’t budget for it.

Creating individual budgets for each month of the year may seem like a complicated process, but it doesn’t have to be.  It may take a few extra minutes, but those few minutes are more than worth it.

 

Continues in Finances:  The Importance of Creating a Budget for Yourself Part 2

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Tips On Understanding Company Asset Management

 

Before you can understand asset management you have to understand what an asset actually is.

Assets include, stocks, bonds, mutual funds and real estate.

Stocks are fractional ownership shares of a company.

Bonds are basically IOU’s that pay an interest rate.

Mutual funds span different classes of investments, between stocks and bonds.

Real estate is usually income generating property, be it privately or commercially owned.

Asset management is basically managing a person’s or corporation’s money by putting it in certain stocks, bonds, or other investments.

Asset management and investing is intended to improve your assets, using some of the money and  maintaining the wealth of the assets as best you can  at the same time.

There are many different strategies used when it comes to asset management and it will all depend on the investment strategies used to try to use the assets to their best advantage.

With many investment portfolios, or types of assets, there can be hidden costs, for example, maintenance, brokerage fees, or different types of insurance.

By being flexible with your asset management strategies, you can add value to your personal portfolio or business, and potentially be able to cut costs in their business.

There are many investment services available now on the internet, so you should research what is available and find three that look right for you. Then you should compare costs, performance, and customer satisfaction.

These aspects are key, because your asset management company will be mainly responsible for your portfolio’s or your  business’s growth and productivity. They will invest your money into many different areas, and will have to keep track of these diversified investments.

Asset management services have a variety of investment objectives, so make sure you know what your own is before you engage their services.

There are many companies that offer similar services, and many which offer different types of investment opportunities; you must make sure you understand that they are before risking any of your money.

Remember, no matter what the strategy, the overall goal of these companies is to produce better investment returns for their clients.

Asset management companies do have risks, but if you look before you leap, the can be the best way to go in order to get rid of all of those expensive individual costs which typically occur within regular business operations to do with investing on your own.

Not only will an asset management company benefit you by reducing the costs of the business, it will also improve the business’s overall profits. Study the companies and the opportunities they offer, and if you choose well, it should be only a short period of time before you will start seeing good  results from using your asset management company in your business.

 

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