Do you know what asset management is? Check it out!

If you work in finance, do you know the importance of asset management? This method can ensure the financial health of your business , and understanding it can help you become a better manager. It’s important to stay on top of everything happening in the business world and stay up-to-date to gain more knowledge.

Don’t miss the opportunity to learn about asset management. We’ve prepared this text especially for managers like you. Stay tuned and check out the full content now!

Can wealth management bring financial health?

Both for financial health and for developing optimized management, asset management can bring positive results to your business. Managing assets involves being aware of the company’s technology, machinery, real estate, automobiles, and everything else related to its material assets; therefore, it’s a process that deserves attention and, when done well, brings numerous benefits.

What is asset management?

Asset management is a branch of business administration focused on the company’s assets , involving control procedures such as the entry and exit of assets. Within this field, concepts involving real estate assets directly linked to the company’s assets can be found, which have the potential to optimize its business.

How does it work?

The first step to organizing your asset management is to conduct an inventory of assets, listing all of the company’s assets classified as real estate assets. All assets should be photographed and given a unique identifying number. Keep in mind that every asset added to the company needs to be registered, and this procedure needs to be continuous.

The second step is to determine the replacement value of each asset, fairly, and estimate the asset’s useful life. Once you have all this data, you need to assign an economic life to the asset, including information about how long the company will own the asset and how long it expects to be usable.

Only after all these procedures can an accounting reconciliation be performed, comparing accounting data with inventory reports. Through accounting analysis , it will be possible to begin the Asset Recoverability Test, which can clarify whether the company’s assets are valued or depreciated.

What are the main applications of asset management?

The main function of asset management is to facilitate efficient administration and demonstrate that the company takes care of its assets. Therefore, the manager must be attentive to the assets that are part of the enterprise and project a positive image within the business environment.

To implement efficient asset management, you must rigorously establish administrative regulations and routines. This will make the company’s internal operations more controlled and organized, preserving assets and preventing losses.

What are the advantages?

Now that you’ve learned more about asset management, check out its biggest benefits. Developing a controlled record of your business’s assets offers the following advantages:

• Expense forecasting, cost reduction and depreciation;
• Better use of opportunities by allowing future investments to be more precise;
• Administration is more successful through solid and precise planning.

What is asset management for?

Contrary to what one might imagine, a large asset can require a lot of work from its owners to manage. Just think about how real estate can quickly lose value, how machinery and vehicles need maintenance, and how inventory can also deteriorate.

Having good wealth management can help you deal with all these problems, whether you’re an individual or a company.

What are the types of asset management?

When we think of wealth management, we often think of it as a single concept, but in reality, there are several distinct models, each with its own strengths and weaknesses. With that in mind, we’ve selected some of the main types of wealth management, and we’ll break them down for you!

Curious to learn more about this topic? Then stay with us!

Bank consultancy

The first presentation model is also one of the least advisable, as it can create situations of clear conflict of interest. We’re talking about consulting services through banks, which often have professionals specialized in the field who are willing to advise on the best options.

The main issue that ultimately creates this conflict of interest is that managers receive a commission on the products they offer. This means that some professionals may choose to recommend options that aren’t as interesting to you, but could be beneficial to them.

Since they usually have more knowledge than most people, it’s not difficult to be convinced to choose a not-so-good alternative.

Wealth management

Wealth Management, on the other hand, involves the comprehensive management of assets, encompassing all aspects, with the aim of preserving or increasing their value. Typically, this service is provided by consulting firms for clients with larger assets.

Eventually, some banks may also provide this service, known in these cases as private banking.

Business consultancies

There are also companies that are fully specialized in asset management practices. These are business consultancies, which are fully prepared and have specialized personnel.

In this case, the most important thing is to look for those who agree to align their administrative practices with the objectives you and your company seek. This is a crucial point to consider when choosing the best company to provide your services.

Family office

Last but not least, family offices are companies specifically focused on managing the assets of high-income, high-net-worth families. In other words, we’re not talking about conventional asset management for companies, but rather for specific families with the resources to do so.

In this case, the company handles all management and advisory services for the family, which will be tasked with handling several different aspects. We’re talking about complex issues, such as inheritance of assets, pension plans, insurance, inventory, and even family financial education.

All of these points are considered and become the company’s responsibility, to the point where they even care for and teach investment strategies to the family.