Nowadays, the businesses can grow their productivity and ROI (returns over investment) in various ways and methods. One of the profitable ways to grow ROI is to use Asset management software and this option will be followed by the manufacturing or trading companies. The trading companies are further categorized into various types of businesses such as Sole Traders, Suppliers or whole sellers, Import and Export companies, etc. The small businesses or freshly started business or the business that are facing loss in business should implement Asset management software to grow their business faster.
As the name suggests the “Asset Management Software” can be further divided into two modules “Current Asset Management Software” and “Fixed Asset Management Software”.
Current Asset Management Software:
How can the small businesses grow through Current Asset Management Software? The “Current Asset Management Software” module will be used to record the details of current assets such as Goods or products, raw materials, cash, bank, etc. As Cash and Bank are also defined as current asset, there are some separate sections for recording and controlling transaction of cash and bank. At the year starting we have to keep record of Opening stock or Closing stock of asset of past year so that we can assume difference between Asset and Liability for the past year of company. This helps the small business to make proper budget for coming year according to past year transaction.
How the Closing stock will be treated as important for Management?
Through calculating Closing stock, Balance cash in company cash book and Bank a/c of the company at the end of the year, the finance department can provide financial statement to management about the current status of company on the basis of Assets at the end of the year.
Fixed Asset Management Software
Is there any profit from the “Fixed asset management software” for Growth of small businesses?
Yes. The fixed assets are the property of company which supports company in getting Loans and liabilities from Bank or any other sources. The fixed assets of company include Building or shopping office, vehicles, space, machineries, Electrical and electronics instruments, etc. The fixed assets of company support business for long time growth and continuity. So by recording and managing details of fixed assets, the business can get the benefits of depreciation for reduction of profit in order to reduce in income tax.
Can Asset Management software work for Finance department?
Yes. If we will combine Asset Management module with A/c transactions module, then Asset management software can work completely for Finance Department. In single software package, we can see all financial transactions as well as inventory transaction at one place i.e. One Trading P/L A/c as well as Balance sheet.
Financial transactions are including entry of Direct Expenses, Direct Income, Indirect expenses and indirect income, Purchase, Sales, Payment and receipt, Journal, Debit voucher, credit voucher, contra entry etc. The Inventory or assets transactions will be entered using Purchase, Sales, Stock Journal or transfer etc.
Review of Asset Management Software
But the chance of issue creation is if the operator is not well educated about Inventory and A/c entry or the operator is not properly trained to handle the “Asset Management software” properly, then there will be big loss of the company may be taken place.
Also proper Development and maintenance of the Asset management required in order to keep data accurate and safe. Otherwise all data will be corrupted and crashed due to improper care.
Summary
Financial transactions and Inventory entry transactions are co-related with each other. Suppose we purchase an asset, we have to use a Purchase voucher through credit or cash. If we sell an asset then we have to use sales voucher for cash or credit. So for these two transactions (Purchase and sales of asset) The Debtors, Creditors, Cash and Bank will be affected surely. So this type of Asset Management software along with Finance facilities is beneficial for growth of small businesses.