An asset management application is used by organizations to track assets, control inventory and plan for upgrades or replacements to physical assets. Each type of asset management application is usually a centralized location that houses detailed information about company assets. The increase of electronic media forms in the business sector has led to the development of software that also tracks digital assets. Keeping track of assets in the home is another type of asset management application designed for personal use.
Company assets are tangible resources and may include IT equipment, office equipment, vehicles, and real estate properties. Digital assets may include company logos, audio or video recordings, and files that are stored electronically on business network systems. A list of personal property may include furniture, antiques, and expensive jewelry.
Using an asset management application can provide real-time accounting of the company’s net worth in terms of real properties and physical assets. Virtually every type of tangible asset that is valuable to the company is maintained in an asset management application. The management application may also assist a company with keeping track of the assets’ life cycle. This may help identify when and if a replacement is necessary.
There are several key features in an asset management application. The detailed information stored may track maintenance records and warranties on equipment. Some asset management software might also have a bar code system that makes it easier to identify the location of an asset. Most applications may also include a reporting function that can be used by different departments.
Small businesses typically use off-the-shelf asset management software to track assets. The software might also be used to maintain inventory levels, sales records, and related accounting functions. This type of information is generally necessary when completing income and tax statements. These applications are typically less expensive for a company that has a small budget, but still needs the ability to manage its inventory and keep track of assets.
For large companies, a more sophisticated system might be used to handle a larger volume of assets that could be in multiple locations. The software typically can also provide a detailed accounting of all assets owned by the company. The information is generally the same as with software for small businesses, with the exception of broader asset categories and the capacity for more information.
Assets that are misplaced can erode the profitability potential for a business. The use of asset management applications might add to business productivity levels. Having a centralized database of assets may reduce the amount of time employees are searching for inventory or assets when performing certain duties.
Asset management applications for home use might keep an inventory of assets for insurance purposes or when moving. A person may have a list of items such as jewelry, electronics, and art collections. Information of when each item was purchased and the approximate value can be available if an item is lost or stolen.