After taking inventory and classifying assets, you need to make an assessment. That is, this step is to identify the replacement cost of the items, their fair and residual value the amount that is expected to be received for the good at the end of its useful life.
Make an Assessment of the Useful Life
Asset management is essential to maintain the organization of the company and to have a control of the assets. Thus, it is necessary to evaluate the useful life of the assets so that it is possible to estimate how long it will still be used. This is essential for more efficient business management.
Update the Value of the Goods
Good financial and asset management consists of updating the values of the organization’s assets. Thus, it is possible to have a greater control of the items that are part of the enterprise and how much they are worth. This means accounting for the depreciation of assets over time, for example. Go for the best with the Hamilton Chukyo Brokerage now.
Reconcile the Physical and the Accounting
This phase is essential. In it, a comparison will be made between the information in the accounting base and the physical inventory data. In this way, the asset manager is able to identify the accounted items that are not physically in the organization’s inventory.
Assets that do not have an accounting record but are part of the company will also be identified. This data comparison generates the following reports:
- Reconciled assets;
- Accounting surpluses,
- Physical leftovers.
Take the Impairment test
According to Law, the Impairment test is mandatory for large enterprises. That is those with annual gross revenue greater than 300 million dollar or total assets greater than $240 million. Known as a recoverability test, the purpose is to ensure that the carrying amount of an item is recoverable according to its ability to produce money. This can happen in two ways: commercialization or the use of assets.
Asset management is essential to have an assertive view of your business.
It is also important when applying for a business loan, as it allows investors to analyze the venture. With professionals, you can apply for the necessary credit for your business to grow. They make it easy to find ventures and investors and you get the support of people who truly believe in your business.
The asset management service consists of making a diagnosis of the financial situation, carrying out a complete study of the client’s financial assets. A management plan aims to support or improve the family, individual or company standard of living, reducing liabilities and taxes and aligning objectives with financial assets and equity, leaving the financial situation organized and bringing tranquility. In order to carry out wealth management, it is important that qualified professionals, with various specialties, such as finance, accounting, investments, legislation and tax planning, be on the team.
From the point of view of personal skills, a professional have to make decisions in a short time; manage and cope with stress; deal with problems and adverse situations. He must be tenacious, flexible and gifted with strong problem solving skills. Some skills are the result of years of experience; others can be acquired through specialized courses.