IntroductionIn commercial terminology, the physical assets of any company are its both the capital and credit. For the proper and well managed work flow, it is imperative on the part of the company to look after its stock and assets, and maintain it and keep a proper record of it with the main purpose to help company in the preparation of the balance sheet for its annual reports enabling the company to put a record of its growth and maintain its profit and loss ratio. Therefore looking at the necessity of asset management, it has become all the more important on the part of the company to make the physical asset management compulsory if it really would like to make a positive growth.
In our company Blue Billy Hospitality, a need is felt to create an Asset register. As we wanted to replace an old technology with a new one but the company’s CEO saw that no proper records of the assets have been kept, therefore there is a need to do something about it. There has also not been monitoring of the physical assets.
In this situation, the best way is the production of the physical asset register and with the permission of the new owner we set about implementing the system for regular reporting and discussion of the performance and condition of assets. But before the asset register is prepared there is a need to know the essential tracking and inventory requirements of the organization. There is also a need to monitor machinery, computers, furniture, stock in production/after production or any other valuable equipment to ensure the business is running in the most effective manner and there is an increase in profitability and efficiency of the company.
The asset management is very essential at the time when the organization is growing or expanding its activities. It is required to carefully monitor all the assets of the organization so that there is no chance of any theft and they are better maintained. Asset management is also required to better track the assets and equipments during the preparation of the audit reports and they are required and made it necessity to monitor during the process of production, manufacturing and distribution.
(Glasgow Caledonian University, Online)Asset Register StructureBefore the system is implemented there is a need to prepare a report to describe about the plan of action, who all will be involved to solve this task and the way we need to do it. The information is organized in the asset register on the basis of the type of structure is chosen. I have chosen the structure of a single card with three separate sections. With this structure we can easily write down asset name, purchase date and description of the asset at the top of the card and we can easily look down the card and see the maintenance and depreciation information.
The biggest disadvantage of the structure is that there is a need to have enough space on each card or book to take account of the variable number of depreciation and maintenance entries that could be needed for different assets.