Deepen Your Understanding Of Fixed Asset Management To Reduce Unnecessary Expenses

Deepen Your Understanding Of Fixed Asset Management To Reduce Unnecessary Expenses

Most companies have a wide range of fixed and liquid assets, so cost-effective implementation, management, maintenance, upgrading, and disposal of assets are essential to achieve the highest possible return on investment.

In addition, there are now new opportunities to significantly improve resource reliability and efficiency through the use and availability of connected devices, sensors, large-scale data analysis, mobile technology, and seamless collaboration in the workflow.

Whether you manage productive assets such as plants and equipment or maintain facilities to offer users the best possible service, the asset management services of CAC use the latest technologies to help you achieve your business goals.

A dual challenge to comply and improve asset management

We can distinguish two levels in the management of fixed assets. The first concerns the compliance and day-to-day management of depreciated goods and merchandise: it remains no less complex!

The teams deal with accounting implications and legal obligations, and they deal with the various contracts attached to fixed assets (rental, financing, insurance, software, etc.). The objective is clear: good risk control in the reporting of information, simplification, and automation as soon as possible of declarations and deadlines.

However, it would be reductive to limit the management of the company’s fixed assets to this first approach. By going further, it is possible to set up “the second stage of the rocket”: an exhaustive and real-time vision of the heritage, which allows decision-makers to anticipate the financial impacts and to optimize future decisions. The management of fixed assets then becomes a real management tool.

Companies can make significant investment and maintenance expenses but do not pay particular attention to the accounting management of these investments. Did you know that poor accounting management of investments can make you lose money?

How do you make money (or not lose) with good asset management? We provide some tips in this direction following our various support missions in the management of fixed assets.

Have a ‘good’, reliable, and up-to-date file

The basis for good asset management is the existence of a ‘good’ asset file. The fixed asset file has the following weaknesses which can have financial consequences (loss of earnings) for the company.

  • Grouped lines: for example purchase of various office furniture
  • Ancillary costs unrelated to the main asset
  • Accounting allocation errors depending on nature and therefore an incorrect depreciation rate
  • Depreciation calculation errors
  • An absence of documentation (supporting document) of the lines of fixed assets.

These practices can have harmful consequences on the management of the company. Ultimately, overall management extends over the entire life cycle of fixed assets: from the investment forecast to the final disposal of the asset.

The sine qua non for setting up such management is the availability of information within the company. The financial department must be in touch with the business lines to know the fixed asset, its condition, and its degree of use. And managers must be able to take advantage of decision support tools for managing the business.

All this can be done with the help of the fixed asset management services of CAC. Along with this, you can also discuss possible issues with the business advisory team of this firm.

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