The management of (primarily) physical assets (their selection, maintenance, inspection and renewal) plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business. Additional categories of assets covered by the scope of this discipline include: information, finance, competence and other intangibles insofar as they relate to asset management decision knowing fixed assets .Historical records can be very important for how you deal with them in the present and the future. In the present, the historical information on assets can help you determine it is current value and how much depreciation remains. For the future, history can help with your forecasting requirements. By pulling reports on like items, you can determine when items may need servicing or replacement in the future. This flexibility allows team members to make rapid investing decisions without constantly consulting the holder of the funds, who remains confident that the overall return on the investments will remain high.
Finding the Right ‘Best Practice’ Requires a Broader View of the Asset life cycle. Asset management – i.e., the acquisition, use, maintenance, modification, and disposal of critical asset and properties – is vital to most businesses’ performance and success. The more capital-intensive the operation, the more business performance is tied to the availability, maintenance and deployment of assets. In some industries, even hours without equipment or transportation can have near catastrophic financial results. Asset management is especially important in the supply chain, where the highest concentration of capital, equipment and complexity exist.
Roles and characteristics of asset management:
All officers who are involved in purchasing, disposal, using, keeping and managing assets should be aware of, and fully understand, their responsibilities in the control and management of assets. In accordance with the provisions of the Public Finance and Audit Act, officers of the University (Accounting Officers) are responsible for the efficient, effective and economical use and safe keeping of the University’s assets and can be held legally responsible for any loss, damage or misuse of such assets. Core Asset Management accounting systems support these core functions by maintaining.
- Account and asset master files,
- Account level asset and cash positions,
- Department-level asset and cash positions, and
- Securities movement and control (SMAC) capabilities.
- Complete a high-level work breakdown (WBS) structure
- Determine the project’s plan at the milestone level
- Identify and recruit project member if needed
- Prepare the Product Initiation Document
- Secure key resources that are needed in the project.
These systems process such transactions as interest and dividend payments, cash receipts, disbursements, and fees. They can track key events and produce client statements and regulatory and management reports. Banks may also rely on specialized systems for specific lines of business, services, asset types, or functions.