What is the main and most importanobjective of thfixed assemagemenfunction? – Quora

What is the main and most important objective of the fixed asset management function?

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, Helping performing arts organisations manage their equipment

Mr. Kulkarnis definition is a great answer to this question:

The key objective is- To increase profitability of your company/assets by increasing uptime and utilisation rate of your fixed assets.

To actually succeed in this, asset manager or other responsible person needs to take care of a few things. The asset manager needs to:

Know, which tangible assets the organisation has. Keep in mind, that a list of what has been purchased and what has been depreciated is not enough. You need to implement a system which allows you to follow lost and broken items as well.

Plan investments well. I mean that the investment decisions should be based on actual data of the assets rather than rough estimates. Otherwise, you end up making poor decisions and investing in assets that you might already own. I know of cases where theatres have bought new equipment to a new stage even though they could have used the existing equipment in another stage. The reason for this was that they didnt know what they actually had. With better data, they could have saved a lot of money.

Know, who is using the items and how. When the usage is tracked, and the employees know this, they are more bound to acting responsibly.

Set up a system for recurring maintenances with alerts. Items that are not maintained properly have lower uptime than maintained items.

Set up a system for the employees to report defects. If an item is broken, it needs to be fixed or replaced asap. Otherwise, the utilisation rate drops.

Make sure that the employees are engaged in taking care of the tangible assets. This can be achieved by rewarding good behaviour (such as reporting defects), and by making the asset information transparent to the whole organisation. If the employees can access the items records with a mobile app, it is easy for them to actually participate in asset management. Lets take care of our companys equipment together!

If you want to learn more about the best practices of asset management, you should check outTrail Fixed Asset Management.

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The key objective is- To increase profitability of your company/assets by increasing uptime and utilisation rate of your fixed assets.

Fixed assets of any company are listed on its balance sheet (refer the example below), so fixed assets have a direct (negative or positive) impact on profitability.

Depending on the type of your fixed assets (Facilities, Plants, Equipment, Machinery, Buildings etc) your plan to increase their utilisation and true asset life will change, but the objective always with any fixed asset management is to improve profitability/return/yield from your assets.

Most companies use some type of fixed asset management software to manage their fixed assets. You canshortlist and compare fixed asset management software optionshere.

Fixed assets management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence.

Organizations face a significant challenge to track the location, quantity, condition, maintenance and depreciation status of their fixed assets. A popular approach to tracking fixed assets uses serial numbered asset tags, which are labels often with bar codes for easy and accurate reading. The owner of the assets can take inventory with a mobile bar code reader and then produce a report.

Fixed assets management is an important concern of every company, regardless of size. Fixed assets are defined as any permanent object that a business uses internally including but not limited to computers, tools, software, or office equipment. While employees may use a specific tool or tools, the asset ultimately belongs to the company and must be returned. And therefore without an accurate method of keeping track of these assets it would be very easy for a company to lose control of them.

Fixed assets management allows companies to track what assets it owns, where each is located, who has it, when it was checked out, when it is due for return, when it is scheduled for maintenance, and the cost and depreciation of each asset.

Fixed assets management allows companies reduce expenses through loss prevention and improved equipment maintenance. They reduce new and unnecessary equipment purchases, and they can more accurately calculate taxes based on depreciation schedules.

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