An overview of fixed asset management and the role of the asset manager
Fixed asset management explained
Fixed asset management is an important function, although it is something that many small business owners fail to realise. The fixed assets in some businesses directly contribute to turnover, and hence profitability, and without these key fixed assets the business would fail. Because of the importance of fixed assets it is important they are adequately managed. Even if the fixed assets deployed by a business has no direct effect on turnover, they are still important and should be adequately managed.
In a nut shell, fixed asset management involves looking after the fixed assets although in reality, the role of the fixed asset manager is broad and encompasses a lot of activities. Fixed asset management is a full time role and all businesses need at least one person whose sole task is to deal with the fixed assets.
So, what does a fixed asset manger do?
If the business has a team of employees specifically taken on to look after the fixed assets the primary role of the fixed asset manager is to co-ordinate the team, delegate the right tasks to the right people and make sure the team work together in order to complete everything they need to. The role is much the same as a manager’s role in any department. However, things are different if the fixed asset manager doesn’t have a team of subordinates to control.
Where the fixed asset manager is the only employee looking after the fixed assets the different activities will include;
- Maintaining the fixed asset register and ensuring all assets are on the register, or correctly entered on the database if asset management software is used.
- Ensuring all the assets are present and correct
- Ensuring all assets are well maintained, regularly serviced and up to the task
- Ensuring all assets surplus to requirements are properly disposed of and replaced
- Ensuring all assets are adequately insured and protected
- Ensuring all assets are safe when the business is closed
The above is not an exhaustive list, and there are other asset related activities the fixed asset manager is expected to do.
As you can see, the role of the fixed asset manager is an important one and one not to be taken lightly. Fixed assets are important and since they are a resource that helps to generate turnover, either directly or indirectly, they need to be adequately managed.