Asset management is a basic requirement for any business to keep its systems in proper condition so they can function smoothly at their maximum capacity. To define it in simple terms, it is the system that keeps track of fixed assets along with their accounting and maintenance. While accurately tracking the status of each fixed asset is a major challenge for any business operating from more than a single location, legitimate ERP software that integrates with an enterprise asset management (EAM) system can is to overcome them. Here is explained in detail how ERP makes wealth management much better when it comes with an attached wealth management module.
#1 Helps businesses get accurate on finances
For most companies, fixed assets are a large part of investments. Therefore, any miscalculation of depreciation values can lead to catastrophic financial reporting errors. This requires companies to stop relying on age-old spreadsheets to estimate depreciation values and others to track assets, and instead rely on an asset management system. Luckily, the EAM module helps companies gain detailed insights into the asset lifecycle that improve predictability and eliminate the likelihood of failures. By providing more accurate asset information, it helps businesses manage finances seamlessly.
#2 Makes assets profitable
While assets need to be constantly monitored, evaluated and controlled to make them fully operational and optimize the ROA of the business, the EAM module in ERP helps to manage them effortlessly. It increases the profitability of assets by controlling their financial accounting aspects, resulting in some savings.
#3 Brings efficiency to processes
An effective asset management engine offers companies the opportunity to mechanize any of their operations or processes, which can seemingly extend the lifecycle of their assets. On the other hand, reliable ERP software minimizes paperwork and manual asset management, which increases efficiency. It helps in conducting quality checks to keep track of each piece of equipment, planning or scheduling new tasks, and keeping a close eye on inventory and other parts.
#4 Improves uptime
Organizations often lose track of their vast assets, especially when operating from different locations across many facilities. Therefore, ERP is a great system to avoid such events as its EAM module provides insights into equipment and inventory. This ensures businesses can manage their service calls or repairs well and ensure all equipment is working properly. Also, EAM gradually helps to eliminate unexpected equipment failures, which cause high costs for contractors.
There are several reasons to include EAM in a company’s ERP software. Most importantly, it optimizes and extends the lifecycle of assets by managing them across different departments and locations. This clearly demonstrates that any organization whose operations depend on vast assets requires a comprehensive ERP that provides facilities for asset tracking and management. While ERP is great for managing a company’s financials and EAM is best for managing wealth, bringing the two companies together will strengthen wealth management to the core.