Accurately grasping and managing fixed assets not only responds to the tax system, but also has various business effects. And, in order to realize such fixed asset management, consulting fixed asset management companies in India becomes necessary.
Companies that have managed their fixed assets manually will also feel the limits as their scale grows and their fixed assets increase. The fixed asset management is effective for such companies, and many benefits can be enjoyed.
“Managing fixed assets” is easy to say and difficult to do, and the word managing has many elements. You have to manage various items from grasping what kind of fixed assets you have to depreciation status.
The first thing that stumbles, especially in fixed asset management, is “just managing” a myriad of assets.
Some may argue that if you just manage it, you don’t have to rely on the experts, but managing all the fixed assets scattered throughout your organization can be a daunting task.
A large share of the assets of modern companies are fixed assets. The cost of their maintenance and repair is one of the largest expenditure items in the budget, and ineffective management of these funds leads to serious financial losses, unplanned stops, and disruptions in work.
By competently managing and optimizing asset servicing processes, the company can develop competitive advantages and opens up previously hidden opportunities to increase its own profitability.
In modern conditions, the activities of enterprises, the economy as a whole and of its individual regions are subject to risks associated with economic, political and social crises.
The global economic and political transformations that have taken place since the end of the last century have affected many domestic enterprises.
Under the influence of qualitative changes taking place in the economy, for the stable socio-economic development of the region, undoubted priorities belong to the reform of enterprises in the industrial sector of the national economy.
The successful solution of the task of reviving the industrial complex, increasing the level of its competitiveness is one of the most important conditions for ensuring sustainable economic growth of the national economy.
Fixed assets, being the main base of the economic potential of an enterprise, predetermine its production capacity and technical level, and, consequently, production efficiency
At the present stage, the issue of the efficiency of fixed assets management at the regional level is more and more acute and occupies a central place. The problem of managing fixed assets is becoming relevant for all forms of enterprise activity.
The main goal of fixed asset management is to create the required volume and structure of fixed assets and ensure the selection of the optimal option for their renewal, and this can be done with the help of fixed asset management companies.
Calculation of the required amount of fixed assets for the coming period.
To calculate the needs of an enterprise for fixed assets, you should calculate the need for their individual groups, including:
- Machines and equipment used in the technological process;
- Equipment used in the management process;
- Industrial buildings and structures.