The team at AAA Consulting has seen thousands of different ways that businesses track their stock, asset and property management.
From note pads to spreadsheets, everyone has a method that works for them. Some are suited only to the few operators who are sheltered from the banks, the accountant, or the estate planner. To share this information with others, however, we need to describe our asset, valuation and projections clearly.
Stock Management
Stock management is the practice of ordering, storing, tracking, and controlling inventory. Stock management applies to every item a business uses to produce its products or services – from raw materials to finished goods. In other words, stock management covers every aspect of a business’s inventory.
Stock management may also be called stock control, inventory management, or inventory control.
Why is stock management important?
Inventory is a major asset that represents tied-up capital; managing stock effectively, therefore, enables a business to free up capital. Efficient stock control requires understanding the mix of different kinds of stock and acknowledging the demands on that stock. This help keeps stock at a reasonable level, balancing the need for surplus supplies with the need to reduce tied-up capital.
Property Management
Real property is property that includes land and buildings, and anything affixed to the land. Real property would include warehouses, factories, offices, and other buildings owned by the business. Real property only includes those structures that are affixed to the land, not those which can be removed, such as equipment. Real property may also be determined to include whatever is beneath the surface of the land, like minerals, natural gas, and oil, rights to the use of property Leasehold improvements (improvements to the property), since these improvements cannot be removed.
Property management is the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and land real estate. Management indicates the need of real estate to be cared for and monitored, with accountability for and attention its useful life and condition considered. This is much akin to the role of management in any business. Property management is also the management of personal property, equipment, tooling, and physical capital assets that are acquired and used to build, repair, and maintain end item deliverables.
Why is property management so important?
Property management involves the processes, systems, and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilisation, and disposition.
Asset Management
Asset management can be defined as, “The life cycle management of physical assets to achieve the stated outputs of the enterprise”. This definition specifies a focus upon the delivery of a stated capability in which assets play a key role, and in which the business must manage its physical assets commensurate with the business need for that capability. Thus, the definition is concerned with short, medium and long-term considerations from the conception of the asset’s need, through its complete operating life, all the way until its disposal phase. This definition also defines the boundaries of asset management and differentiates it from other key management processes.
Why is asset management important?
The benefits of asset management are numerous: more predictable and sustainable cash flows; the final outcome of the profit and loss; the value of the assets on the balance sheet; and the ability to both support an expected share price and achieve market share. Managed effectively, the benefits include improvements to productivity and efficiency which places a business in a better position to increase their return on investment.
Drawing on many years’ shared experience of dealings with lenders and other professional industries, the team at AAA Consulting has structured many stock, asset and property management tools to suit agribusinesses and businesses of all types. These will remove double handling of information into different tools to suit different parties. Use our stock schedules to monitor herd movement or consult us about cane production and Commercial Cane Sugar (CCS) figures.
AAA Consulting and its network of partners can review your risk exposure in dealing with other entities, ensure you have sufficient insurance cover in place and provide support in obtaining Personal Property Securities Register (PPSR).
Access the management tools through your personalised Member Dashboard today.