Do you know how your company’s assets are classified?

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To operate, companies need to acquire goods –materials or intangibles– that allow them to meet their objectives. These are the assets of a company. How are they classified?

Within a company, an asset is all good that it owns and can be converted into money or other equivalent liquid means.

Gerardo Trujillo, president of the Mexican Association of Professionals in Asset Management (AMGA) states that assets can be physical, financial, intellectual property, technology and human, tangible or intangible, financial or non-financial and, to this, are known as asset portfolio.

The importance of some over others will depend on the type of organization, however, at an industrial level, an asset management system will generally be focused on physical assets, explains Trujillo.

The assets that a company owns are classified according to their liquidity, that is, how easily they can be converted into money: fixed and circulating.

Fixed assets are used in the business and not acquired for the purpose of sales, such as machinery, equipment, and real estate.

Current assets are assets that will be used in less than one year, such as stocks.

In the case of fixed assets, their management involves a series of recommendations and standards that companies must follow – especially manufacturing – to achieve optimal performance.

One of these is the Asset Management System ( SGA ), which consists of establishing a policy and objectives to ensure the availability of resources (assets), competencies, communication, documents and information requirements so that the value that the assets must deliver. The purpose is that all areas (together with their respective assets) achieve the goals of the organization together.

Trujillo stresses that proper asset management offers companies a balance between risk, performance, and the costs they must cover.

Like all material goods, fixed assets have a useful life. When they reach their end, the owners of the companies must foresee this in order not to go into contingency regarding the cost of acquisition.

There are different financial tools that facilitate this purpose, one of which is a loan.

Financial leasing offers superior advantages over other forms of financing, because all payments are deductible, including maintenance expenses.

How does it work?

 

  1. Identify what type of machinery or equipment you need and suppliers
  2. Request a quotation once you have determined model, quantity or functions
  3. Submit this quote to the lessor, along with the corresponding documents
  4. The lessor will make a rental plan with the option to purchase at the end of the period for a residual amount, renewal of the contract –where sometimes equipment update is included– and even termination of the contract
  5. Get the most out of the inputs and grow your business.
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