Engaging in asset management practices is essential for every business owner. Regardless if your organization has real property such as buildings or land, or intangible items such as intellectual property; everything needs to be safeguarded through some sort of planning.
Establishing adequate asset management plans is crucial for ensuring future growth and profits. The initial phase involves documenting everything owned by the company. This includes all real estate, business assets, financial assets, and intellectual property including trademarks, patents, and copyrights.
Owners should include every asset owned by the company that has monetary worth and provides profit or cash flow to the owner. This task can become arduous so it is recommended to invest in asset management software to maintain record of owned, sold, or exchanged property.
Maintaining good records of company assets is a vital aspect of business succession and management practices. If adequate recordkeeping is not in place it will be virtually impossible to have a clear picture of the true value of the business.
Companies that fail to perform recordkeeping will be unable to identify if assets are adding or taking away from the bottom line. Most organizations find it better to employ asset managers and accountants who can keep a close watch over the company’s financial health and identify potential cash flow problems.
Asset managers can analyze profit and loss statements to determine if assets are depreciating or appreciating in value. Furthermore, managers can help owners figure what type of assets to invest in later on.
This information is invaluable because it lets financial planners better determine the most suitable investment plan for the company. Making the best use of business assets gives owners more financial leverage which can help them expand their business.
One of the most valuable benefits of asset management is it provides accurate records for tax purposes. Every business owner is responsible for paying taxes. Corporate assets are a major factor in the overall value. If asset documentation isn’t accurate owners could end up being audited which could result in additional property taxes or fines.
Another benefit of establishing asset management practices is it helps maintain control of patents, trademarks, and copyrights. These items protect intellectual property from being stolen or used by others. The best approach is to work with a business law attorney to ensure everything owned by the company is adequately protected and accounted for.
The Information Age has certainly added a new layer of complexity to running a business. Company owners are finding it next to impossible to keep track of where their information goes once it is posted on online.
Even though photos and content can be copyrighted this isn’t going to deter people from making use of information without written permission. Owners that conduct business online will also want to give consideration to hiring content managers to keep watch for illegal use of intellectual property.
Every business owner ought to consider implementing asset management tools that allow them to keep an eye on everything they own. Keeping vigilant watch over real and intellectual property is the key to ensuring the business experiences positive growth.
At Craton and Switzer we understand the complexities of asset management and offer solutions to help business owners take control. We also specialize in business succession planning and asset protection to ensure companies are protected regardless of events that may occur.
Contact us today to discuss your needs and learn ways to set your company up for long term success. While you’re here visit our blog to discover more ways to protect business assets, along with wealth building, retirement planning, and estate planning strategies.