Business expansion is often one of the main goals of any company. When done correctly, it will ensure billing, security and optimized performance. And one of the most important things to be done to achieve success is asset management.
Quantitative and qualitative aspects of equity must be observed and understood before any decision related to expansion. We made this article for you to understand all the benefits of asset management in the expansion processes. Want to check it out? So keep reading until the end!
What is asset management and how does it work?
Asset management involves controlling the assets, items and resources that make up a company’s equity. She is responsible for identifying the objects in order to register each material that the organization has as well as its state of conservation and the amount invested in them. In addition, its duties also involve monitoring the use of these materials, regardless of the nature of the operation whether it is the office, the maintenance area or the production, for example.
From there, it is possible to define the depreciation rate, identify losses and any other eventual occurrence that generates financial losses for the business. It is worth mentioning that the work involves planning, a well-executed strategy, protective actions and preventive work. Go for the best in Hamilton Chukyo Brokerage in this case.
Why do asset management?
Asset management is essential for controlling costs, which can be related to the assets and obligations of a business. This facilitates administration, inventory measurement, equipment lag and obsolescence levels, etc. With a good balance sheet it is possible to know the value of the assets (rights and assets) and liabilities (obligations and debts) of any organization. By looking at balance sheets within a certain period, it is possible to identify whether the company is growing or declining and to make a better choice of the ideal moment for an expansion.
What are the benefits of asset management?
In addition to being fundamental to decision making, asset management brings some other benefits.
The financial results of a company are generally the indexes analyzed by stakeholders and investors. Transparency in operations, combined with good equity control, can be a decisive factor when it comes to obtaining loans, financing and attracting investors.
Efficient budget planning
With the data obtained by the activities of the patrimonial management, a more precise budgetary planning can be elaborated. Budget estimates are now made according to the real needs of the company and there is a reduction in misused resources.
With good asset management, it becomes much easier for the company to adapt to the legal requirements related to asset control. A well-designed project in line with tax planning will enable better use of depreciation rates and recovery of tax credits.
Offers better positioning for the board
From the moment that we have a stricter control over corporate assets, managers are able to better assess the decisions that need to be made regarding new investments, for example. In other words, acquisitions start to be made in a more correct way, optimizing the use of capital in each scenario and achieving a more satisfactory ROI in these situations. In the case of expansion projects, specifically, the decisions regarding which materials should be purchased to guarantee the progress of the new activities are based on solid data and, therefore, are more correct.