06 May 2020 Ankit Chadha

5 New Ideas for Effective Fixed Asset Management Services

Fixed Asset Management Services | TRC Consulting

In the asset management services industry, last year was eventful, where unpredictability was the norm. Against this backdrop, we've chalked out these five ideas for effective fixed asset management services that will impact this industry. Three trends prevail: infrastructure, performance and doing the right thing.

  1. More Engagement With Frontline Executives

The abundance of open-source analytics and code libraries, access to vast volumes of data that are created online, is progressively more accessible to everyone. This involves a reduced dependency of fixed asset management services on coders and data analytics professionals.

Engaging the asset management services team with the frontline executives of the company also enables better use of tools and resources. This idea will have significant effects for asset managers to make improved decisions, even in the IT sector.

  1. An Active Management Develops Active Ownership

As unpredictability reasserts itself, the memory of 10%+ annualized equity returns becomes distant, asset management services will describe themselves by not just what they invest in but also on how they invest.

Asset management services that are looking to make a convincing case for how they can outdo their performance in problematic markets will start to shift from active management to an active ownership mentality. This is where the average holding period will increase compared to the traditional approach. The private equity-like investing method will help distinguish those fixed asset management services that will reliably structure its value proposition.

  1. Foster Business Resiliency

Cyber technology, infrastructure, and data protection threats are becoming particularly relevant for asset management services because of rising compliance regulations and expectations of the asset owners. Most asset management services recognize and prioritize the company's most significant non-financial risks, develop adequate controls against failures in networks, prevent abuse of sensitive consumer data and also deliver effective reporting that allows informed decision making.

We expect information protection and business risk management to be the core goals for asset management services as they try to strengthen their ability to recognize, secure, track and respond to critical risk incidents and recover from them.

  1. Bridge Valuation Gaps

With the recent substantial decrease in market capitalization for independent fixed asset managers, prospective suppliers of in-house asset managers are likely to lower their cost expectations. This impact may be paramount for small players without the supply scale or product range, making them much cheaper and potentially more appropriate targets.

In case of a recession, many banks and insurers regard their captive fixed asset management services as a possible indicator of monetization. As this indicator's value decreases, prospective buyers will want to close a trade, contributing to more substantial consolidation of funds. So, bridging the valuation gap by making use of expert asset management services surely will bring many benefits.

  1. Stock Or Inventory Audit

Issues regarding whether an auditor needs to get a specialist or run a few off-site testing to ascertain that the inventory is genuine and not fake. For instance, some goods like jewelry or advanced technological products, it is unusual for an auditor to realize much difference between real and counterfeit goods. Most auditors would want to bring in an expert for a careful examination or send a few samples for testing to a lab. In performing a stock audit, any of these procedures could occur:

  1. Cut-off Analysis:  A process where one or more auditors assess a company's methods and practices. The last receiving and shipping transactions are examined before auditors conduct any physical tally or count and follow transactions. Companies would realize that they are fully accounted for with this procedure.

  2. Physical inventory counting: A process of physically counting all inventory assets to account for them. An auditor(s) usually uses tools such as a bar code scanner to count each asset.

  3. High-value item inventory analysis: This procedure is also known as ABC Analysis. It refers to the grouping of products based on value grades. For example, A grade is for high-value products, B for mid-tier products, and C for low-value products. This procedure offers both efficiency and better management of the company stockroom.

We recommend when using such procedures, always match the quantities that are brought forward from the count against the recorded amounts on the ledger. Only then book any adjustments that are required.

The Role of TRC in Asset Management Services

At TRC, our fixed asset management services handle funds for different organizations. On behalf of our clients, our experts make effective investment decisions to grow and develop their finances and investment portfolio.

We work with numerous investors and employing our fixed asset management services can diversify your company's finance portfolio. Our professionals offer you with access to better-valued options with higher capital appreciations and also helps you mitigate any risks that are associated with it. We are renowned for establishing the best practices for fixed asset management services. We make sure that you get accurate results within the specified deadlines. For an understanding of our services, get in touch with us!

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