Revenue is the total income amount that is generated by the sales of goods or services that an organization provides as its primary operation. In other words, it may be known as the gross sales which is referred to the top line as it concludes the income statement of the organization.
Asset management system allows the organization to analyze problems in the business plan to redefine their budgets and reduce difficulties in the business processes. The software assists organizations to reduce the time and costs of maintenance for their equipment and machinery.
So, asset management software empowers the organization to generate operational proficiency for assets and derive revenue for the organization.
The training of asset management is a comprehensive process, done to represent the objectives of an organization. The training of asset management program helps the organization to build expertise to achieve desired front from asset management software from their team.
Organizations generally try and opt for a cost-effective method for asset management solution to manage their business assets efficiently. However, the asset management solution allows organization to monitor the asset condition, their regular maintenance to enhance the business productivity of the assets.
Asset management is important as it the process by which an organization can monitor and manage its business assets using a systemized approach. In benefit, concludes the enhancement in organization’s business productivity while considering the business efficiency to increase return on investment.
All the organizations require a regular check over their assets and inventory considering their revenues and profits. Implementation of asset management system application comprehensively gathers all the information at one place to keep an easy track over all the assets and generated revenue.
To the bonus, as an advantage of rise in technology has eliminated the use of spreadsheets from asset management system. This method was earlier but it does not prove to be efficient for the long run as the spreadsheets are more likely to errors.
The lacking features of this old technique are:
- No real-time tracking
- Absence of cloud-based application so, can’t be operated from any other place
- Not so useful in longer run
Use of Asset Management Application to Increase Revenue
In an organization, asset management software application helps to increase the returns on business assets. The application assists in tracking, managing and recovery of assets through their entire life-cycle.
The asset involved in a business can be tangible or intangible, most important objective is to receive maximum returns possible.
The outcomes that you can achieve from implementing asset management application are:
- Improve Acquisition and Use
The system enables you to track the asset for its entire life-cycle and improve your business with all the information from its acquisition to its utilization.
With the implementation of asset management, you will be able to know all the unnecessary practices and strategies used to purchase equipment to avoid them wisely.
- Improve Compliance
Asset management app enables you to receive a detailed report on assets’ acquisitions, utilization, their maintenance and disposal, especially in government agencies, non-profit organizations, etc. so you can take better decisions with more comprehensive and error free reports.
- Improve Asset Reliability
Asset tracking and management improves reliability over assets through monitoring their regular maintenance, analyzing their costs, etc. The app also allows:
- To identify trends, create and strategize plans in order to balance assets costs and their availability.
- To quickly identify and resolve maximum number of queries.
- To identify important inventory parts that requires running large system.
Features of asset management system those are helpful to increase revenue
Major features of an asset management system that are helpful to increase revenue for an organization are given below:
- Asset tracking & management
Asset tracking and management is important for the organization’s bottom line and compliance, as it enables you to know the exact location of asset, their utilization and when its useful life comes to an end.
Every change that is made to information is recorded for the reference (whenever required) such as movement of devices from site to site or department to department. Further changes may include:
- Change in IP Address of the IT device
- Change in location of Asset
- Removal of Asset from the site and system
- Newly installed asset and uninstallation of old asset
- Expiry and renewal of asset license
The objective of asset tracking and management solution is to maximize the control over asset and reduce the equipment loss.
- Maintenance Management
Regular check on maintenance of the assets is important to keep the business growing. Although maintenance does not every time mean to repair rather it is done as a follow up with the regular processes to keep the asset new in order to maintain its healthy working to keep it operating in any environment. It does not always mean to repair the equipment only when it is broken or totally dysfunctional.
The equipment should be labeled properly to examine it thoroughly, its surfaces should be checked regularly and replaced (if necessary), and oil schedules should also be checked and taken care at regular intervals.
Therefore, the equipment always requires regular inspection and modification to remain and work in good conditions and also continue to generate efficient products for a long time.
- Depreciation Management
It is important to analyze how an organization utilizes its assets depreciation. Mostly, it is considered as an important part of the expense on an organization’s income statement.
Each organization has a fixed asset that is considered by record keeping teams to conclude the overall worth of the organization on annual basis. This considered asset can be a fleet, asset, or equipment that are owned by an organization for a long time.
- Audit and Physical Verification
Physical verification of assets is conducted to check and verify the existing number of assets that actually owned by an organization. The process includes the verification of each asset’s existence from its location, and working condition.
At the end of every financial year, it is required by the organization to know exact amount of assets they have, their located, their purchase information and acquisition, their current status of utilization and much more.
However, it can be concluded as there will be not profit without revenue. Or in simpler words, in the absence of revenue, no profit can be earned from a business or it cannot stay for a long time. Because the revenue is collected to justify the fixed and variable expenses that are paid to run or operate a business. In other words, zero or low revenue can only lead to an unprofitable business as well as negative financial results.
Therefore, implementing a solution that can assist you to generate maximum returns is a good investment. Asset management software features all the points to fulfill your desired results. Also, it is cloud-based solution that assist you to increase revenue by tracking and managing your business assets in real-time.