In the ever-evolving digital landscape, managing multiple assets can pose challenges for individuals and organisations alike.
Around 80% of employees waste 30 minutes every day just to retrieve information about one specific asset. This report by Mintek Mobile Data Solutions, a US operations management software company, demonstrates how an inefficient asset management system can lead to significant productivity losses over time.
Besides the financial loss brought by manual retrieval of information, there are also cases where assets are lost or stolen. According to Moving Intelligence UK, there was a 54% increase in tools and asset theft over the past two years. Improper monitoring and managing of assets exposes asset owners to vulnerabilities and make them likely targets for unauthorised access.
Fortunately, various asset tracking tools have been developed to mitigate theft and loss. A prime example is advanced asset management systems (AMS), which provides features like enhanced security, location tracking, automations, and efficient information retrieval systems.
All-in-one platforms like this can help collectors and owners of high net worth pieces feel at ease, knowing their prized possessions are safe and secure.
If you want to ensure maximum security for your art collectables, wine collections, memorabilia, paintings, or other valuable items, then this article is for you.
The sections below will teach you what asset management is and the advantages you can enjoy when you use software to manage your collections.
- Increase the Visibility of Your Investments
- Boost Productivity
- Reduce Loss
- Organise Assets
- Minimise Compliance Risk
What is Asset Management?
According to Investopedia, asset management is a method used to increase your asset wealth over time. It involves acquiring, maintaining, and disposing of assets that maximise their value to generate returns.
Today, asset management allows individuals and organisations of all kinds to streamline operations using specialised asset management software. These tools facilitate consolidating data in a central database and identifying trends with insightful data. It also helps in decision-making that simplifies the process of asset management.
Asset Tracking vs. Asset Management
Compared to asset tracking, asset management encompasses a wider set of activities. Asset Tracking specifically focuses on the monitoring and recording of the location and movement of assets.
It uses technologies such as GPS, RFID tags, software or barcode systems to keep tabs on where your assets are and how they are used, as referenced in Forbes.
Asset Management, on the other hand, involves optimising asset utilisation, planning for future asset needs, and minimising asset downtime. An asset manager or your management system, plays a crucial role in integrating these three activities.
In simpler terms, tracking assets is one of the many tools used in asset management. Asset tracking solutions help you know the location, while asset management supports the planning of the entire lifecycle of assets, as noted by the Corporate Finance Institute. It ensures that your assets’ wealth is maintained, utilised, and aligned with your goals.
Examples of Asset Management Systems
Collectors utilise various systems to manage their assets and track their valuable possessions. The following are a few commonly used asset management solutions.
Pen-and-Paper Asset Management
One of the basic and traditional methods for asset wealth management is using pen and paper. While simple and technology-free, this approach has its challenges.For example, searching for information can be time-consuming and labour-intensive, especially when dealing with thousands of assets. Practising this method can potentially reduce overall productivity.
Spreadsheet Management System
Using spreadsheets is a more advanced way than the pen-and-paper method. It allows for making a detailed list of assets, including purchase dates and serial numbers. Spreadsheets make it easy to access, search, and organise assets at a basic level.
Despite their advantages, spreadsheets have their problems. For example, human errors, like accidentally deleting, copying, or entering data incorrectly, can lead to inaccuracies in asset information.
Asset Management Software
An asset management software is a more simple approach compared to the previous methods mentioned. It allows you to automate building a database of assets by importing data from external sources.
It lessens your work by minimising manual recording of asset names, types, and the like. It provides advanced features for accessing, searching and organising assets.
However, despite its benefits, asset management software has its challenges. For instance, the initial set-up of the software may be time-consuming as it involves learning the system and familiarising yourself with the processes. Utilising customer support can help you in this challenge.
Five Benefits of Asset Management Systems
Having a system for managing your assets gives you several advantages. Here are the top five benefits of using an asset management system.
1. Increase the Visibility of Your Investments
Asset management involves tracking what you have, their locations, and how much they cost. Laurence Tindall, the founder of an IT e-learning provider, suggests that leveraging asset management repositories allows you to make well-informed and accurate decisions without relying on rough estimates.
Asset management software increases the visibility of investments by providing a centralised record of all your assets’ information.
2. Boost Productivity
Documenting asset information can be time-consuming and labour-intensive. However, utilising asset management software reduces this burden by automating the processes of recording details, updating changes, and managing data. This automation not only minimises manual effort but also boosts productivity by streamlining the processes.
According to a report by The Network of European Museum Organisations (NEMO), the primary advantage of digitising asset information is that it automates the retrieval of details from external sources such as physical documents. It also facilitates integration with various applications, expediting the data transfer process.
3. Reduce Loss
While many associate loss with theft, it can also occur in situations like damage or depreciation of assets over time. Asset management helps reduce these risks by storing records of asset conditions and periodic reviews –providing a clear and current understanding of asset performance.
Forbes emphasised the importance of having a detailed asset management system, noting that it enables informed decision-making regarding when to repair, sell, or upgrade an asset.
4. Organise Assets
Beyond cataloguing details of your assets, asset management allows you to organise assets in a more structured manner. It enables you to categorise assets according to their type, location, and condition –simplifying the identification of assets.
Whether you are managing a few dozen or thousands of assets, asset management ensures that they are locatable, facilitating efficient data retrieval and management of assets.
5. Minimise Compliance Risk
Asset management systems play a crucial role in minimising compliance risk by ensuring that assets are documented in accordance with regulatory requirements. It provides a centralised repository for storing detailed records on asset acquisitions and compliance documentation.
According to a leading accounting company, Ernst & Young, utilising emerging technologies like asset management software allows compliance professionals to respond effectively to changing regulatory and investor demands. In this sense, asset management software is used to efficiently streamline operations for managing assets.
Why Asset Management Software Matters
Managing assets offers several advantages. It increases visibility, boosts productivity, reduces loss, organises assets, and improves decision making.
Both manual and advanced technology methods can help in this process. However, asset management software stands out for promoting asset use understanding and strategic planning in a simpler way.
With the right software, you can maximise the efficiency of your asset management.
Asset Management System: Frequently Asked Questions
1. What is an Asset?
An asset is something valuable like cash, property, vehicles or any item that has economic worth. It is owned or controlled by a person, group or business and has the potential to produce future gains.
2. What is Tracking Assets?
Tracking assets involves systematically recording and monitoring the location, condition, and other relevant details of your assets.
3. What is Asset Management?
Asset Management is the organised way of overseeing and optimising your assets, making sure they work efficiently and cost-effectively from acquisition to disposal.
4. Why Should You Track Your Assets?
Tracking your assets is essential for informed decision-making and efficient asset management. It provides valuable insights into their location, condition, and value. It also reduces the risk of loss from close monitoring and contributes to effective financial management based on data.
5. What are the Different Methods of Asset Tracking?
When you manage a portfolio of valuable pieces, asset tracking can be done using a variety of methods such as the traditional pen-and-paper approach, spreadsheets, QR Codes, RFID, GPS, etc.
Maximise Efficiency with MyAssets
Asset management involves tracking, organising, and managing assets, making asset management tools like MyAssets essential.
For MyAssets, specifically, its intuitively designed web and mobile platform streamlines the tracking and organisation of your asset information. This gives you the ability to monitor and capitalise on your resources anytime, anywhere.
Experience the benefits of MyAssets' comprehensive asset management platform firsthand. The platform can be explored in detail at app.myassets.com.
