What is more important to your company than its hard earned assets? We really couldn't think of anything else either? That is why Asset Management is a fundamental business process. Asset Management determines corporate value and has a direct impact on profitability. Because so many companies pay little attention to managing asset disposal, 50 percent of assets on the books are either so poorly described or are no longer in use, they cannot be located during a physical audit. A majority of companies blindly believe that only 5 percent of asset registration is inaccurate. On average physical audits reveal 40 to 50 perfect inaccuracy of assets are well described, registered, and can be located. At that high of a percentage rate you then run into the factors that these missing assets "probably" exist but it is impossible to prove. Ten to 20 percent are described but cannot be found, meaning they may no longer exist. To improve accuracy strategies must be created with more in depth processes and information sources.
Inconsistency in information makes it hard for companies to answer the question, why? When a company is unable to justify what it has spent or what it has invested in problems will occur. These problems com primarily from issues where the lack of coordination between what the asset register has recorded within finance and inventory lists used by the rest of the company. Finance's primary objective is to record the asset value for depreciation purpose. Assets tend to be consolidated into a single figure without taking into account the number or complexity of the component parts. Business risk comes into play when companies approach asset management in a lazy manner. When asset information is poorly recorded problems in situations where repair and replace contracts for example can become null and void costing the company money it's already invested.
Poor, inconsistent asset information can leave a company in a vulnerable state in the cast of insurance or disaster recovery. Any inconsistency in the asset register could raise significant doubt for a company. Doubt which could delay payment in reporting an insurance claim or worse face charges for items that do not exist. There are software programs such as Extensis Portfolio 8.5 digital asset management software for Mac and PC platforms. The software gives the user the ability to visually organize, sort and preview your complete library of digital assets both online and offline. Its built-in automated features allow you to quickly embed metadata into, archive, and share your assets with partners, clients and vendors.
There is no excuse for such poor control over important business assets. Even a simple process of recording serial numbers, asset location and value meets not only the needs of the finance team but the ability to track assets for the entire company.
Please visit our website for more information! Rayshawn Technology
Monday, July 14, 2008
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