Be it individuals or companies. They own many types of assets. Even if we can classify them as tangible or intangible assets broadly, there are bound to be many. Managing these is not a simple feat. One must face various challenges, especially when one has a large client base and constantly find avenues. Keeping track of one’s assets and monitoring them is a must to progress financially and keeps us looking for the best possible ways.
Have a team of people who can manage your assets or have an asset manager. In most banks, there are positions known as fund managers who are used to keep track of a particular mutual fund, who know the mix and profitability of the portfolio of the stocks in the mutual fund.
If there are many types of assets, it is better to have a team of people or managers who can handle all of these assets. The motive of this team or this individual must be to increase the economic value of your assets. It is tough to find trustworthy people for this kind of job. But it is imperative to work efficiently and keep track of his/her assets.
Using an Asset Management Solution
If a person has many assets in various categories, it can be wise to try out an automated asset management solution. An inventory management software saves the hassle of time, effort, and cost and helps in getting you an equivalent result, if not the best result. This software can be used for various aspects of the asset and not just monitor the asset’s value.
Some noteworthy inclusions are contract management, deep-dive analysis, and report generation against various parameters that you can determine, knowing the asset value, depreciation tracking, etc.
Track Your Assets
The value of every asset changes over the years, as some may appreciate while others depreciate. There might be cases where you have been paying taxes and insurance money for an asset that is not in line with your financial target or is outside your current portfolio mix of assets. In such cases, it is best to sell such assets and invest in other financial instruments so that there is a substantial increase in your portfolio’s economic value and is relevant to the current times. This can be done only if you can keep track of your assets in a periodic cycle.
Taking a cue from the previous point and diving slightly deeper. It is important to keep track of your assets that are depreciating in nature and your asset management software will help you do this seamlessly. The nature of your asset might have been profit-yielding or might have helped increase your employee’s efficiency during the time of purchase, let us say the purchase of a typewriter 30 years ago.
The typewriter is merely an antique that can be kept as a decorative showpiece in your office or home. That is because better equipment has taken the place of a typewriter in the workplace. Hence it has been eliminated. Similarly, one must eliminate assets that are like typewriters in his/her portfolio.
Knowing the Life Cycle of Your Key Assets
Purchasing an asset is perhaps one of the easiest decisions to make. The tougher question is when you plan to sell it and how long you intend to keep it. One must know the life cycle of the asset he/she is purchasing so that it does not end up becoming an asset that is depreciative solely because the owner did not know the lifespan of an asset.
Every asset has a life cycle, and its value changes constantly. One needs to know how long to keep it and when exactly to sell it. Only then, the asset can give the owner the satisfaction of increasing his/her economic value, which is the true purpose of an asset.
Although building an asset base is an important part of the story, one must be intelligent enough to manage the assets properly so that the assets help him generate more money, thereby increasing the economic value of the owner and the asset itself.
Tracking assets and managing them is very important and must be done using a systematic approach, and various strategies must be deployed for various assets. This is the only way to ensure that the assets are growing and ensure that they continue to make money for you.