Assets Are Not Just To Be Owned But Also To Be Maintained
I recently had a conversation with my father who was mentioning that because of the nature of my husband’s service, he need not have to pay the tax for his one asset and only a third of the normal amount for another joint one. We never used to bother about listing or making efforts to manage all our assets. The reality is, however, somewhat different. Assets are not just wealthy possessions to become proud of or spend money for maintenance, but if properly managed, can save your routine expenditures.
If taking care of personal assets needs this kind of dedication, what will be the level of professionalism required to keep the assets of a business running and worthy? The system of asset management deals completely with this aspect of business and this post tries to define the process in terms of its role.
Defining the system
Managing, handling, directing and sometimes developing the assets in all forms that matter to an entity constitutes the task of asset management. The assets covered include:
- Tangible assets like infrastructure, buildings, machinery, logistics etc.
- Intangible assets like liquid cash, human resource, intellectual properties and proprietary technologies like patents and trademarks, financial securities etc.
- Financial services such as investment products and business facilities.
Who carries out asset management?
An entity can manage its assets and investment choices in two ways:
- Through in-house department dedicated to the function of taking up all the responsibilities of creating, monitoring and updating all kinds of wealth related to the business under concern in the most cost-effective manner.
- By outsourcing the management of financial and physical assets to a professional asset management company like investment banks, which take care of the firm’s internal wealth and also advise and provide various financial products eyeing a development in the business.
On the question of which option is better, it depends on the perceptive preference of the company. Entrusting the internal staff members with the task of asset management helps to effectively and effortlessly integrate the system into the operational cycle of the company, under the direct vision of the management. It also imparts the necessary transparency and secrecy to the complete function. On the other hand, depending on an external, though professional financial firm for the same creates a sense of appendage functioning of the crucial part of the firm’s running in addition to disclosing the assets out of the company. However, this displays the latest updates including the prospects of QProfit System and progression in the market that might be adopted to improve the company’s performance.