Business assets are tangible or intangible items used in business operations for an extended period, including intellectual property. Short-term consumption items like paper and coffee makers do not qualify. Identifying assets is important for taxes and presenting company value to investors. A business asset is any tangible or intangible asset that is expected to be […]
IT asset management involves managing hardware and software assets used by businesses. Steps include inventory, capital planning, using asset management software, and process review. Software can simplify inventory and tracking, while process review ensures efficiency and resource tracking. IT asset management is the management of all IT assets for a business or organization. IT assets […]
Financial assets, such as certificates, bonds, stocks, and bank deposits, represent the monetary value of a physical item through a contractual agreement. They have no fundamental value until converted into cash and can be used to determine personal wealth. Valuation can change depending on the asset and when it is valued. A financial asset is […]
Equity asset allocation is the process of managing investments in stocks, with investors deciding how to allocate their money among different types of businesses based on their investment objectives and risk tolerance. There are different types of equity, including public and private, and investors must consider the risks and rewards associated with each type when […]
Retirement asset allocation involves dividing investments among different asset classes based on risk tolerance and investment horizon. A well-diversified portfolio includes a mix of assets, including stocks, bonds, and annuities. Balancing risk and income requirements is key. Asset allocation involves dividing an investment portfolio among different asset classes. Retirement asset allocation distributes your assets among […]
ETF asset allocation involves diversifying a portfolio with exchange-traded funds (ETFs) to reduce risk and increase profit opportunities. ETFs offer unique opportunities for investing in different sectors and regions, and are a practical tool for more diverse asset allocation. They are also easily bought and sold, making them a popular choice for investors. ETF asset […]
Real estate asset managers oversee the management of commercial or residential properties and may also be responsible for buying and selling real estate. A college degree and previous experience in the industry are often required. Investment firms and property management companies offer internships for students, and experienced real estate agents and lenders may transition into […]
RFID asset tracking uses microcomputer chips and scanners to track items, with customizable active and passive systems. It prevents asset theft and misuse, but can be expensive and require maintenance. Radio Frequency Identification (RFID) allows a business to track various items through the use of a microcomputer chip and scanner. RFID asset tracking allows companies […]
Asset management involves the professional management of investments, typically by wealthy individuals. Investment banks and professional firms offer asset management services, with the largest accounts being handled by US-based companies. The investor meets with an asset management team to discuss investment objectives and styles, with regular meetings to track progress. Diversification is key to achieving […]
Asset tracking software is important for businesses to manage inventory, with options for fully automated or partially manual systems. It saves time and money, tracks customer trends, and detects anomalies. It is used in retail, car rental, and law enforcement industries, with barcode technology available. Free versions have limited support. In business, asset tracking software […]
Assets, such as buildings and cars, depreciate over time and are prorated over their expected life. Depreciation is calculated differently for profit and loss schedules and income tax. Depreciation can be calculated using a straight-line or accelerated method. Real estate assets are calculated differently and require the deduction of the land value from the full […]
Asset quality is the risk associated with assets held by a person or institution, with loans requiring strict assessment. Risk managers assign a numerical rating to each asset, and banks must balance high-risk investments with safer ones to ensure financial coverage. Asset quality refers to the overall risk associated with the various assets held by […]
Fixed asset accounting tracks the value and changes of items a business uses for operations. Companies have internal guidelines for recording fixed assets, including a dollar limit for treating an item as an asset. Accountants must value assets at book or market value and determine if they are depreciable. The department is also responsible for […]
Asset valuation ensures accurate reporting on balance sheets to avoid failed accounting audits, tax liability issues, and fraud suspicions. Valuation of assets like shares and bonds are easy, but intangible assets like copyrights and real estate require unique valuations. Professional asset valuation is critical for IPOs, mergers, and acquisitions. Asset valuation is a procedure in […]
Asset sales involve selling bank receivables, such as auto loans, mortgages, and credit card receivables, to outside investors. They can be whole loans, entire loan groups, or securitized loans. Asset sales reduce a bank’s risk and improve its capital ratio. They can also refer to transfers of ownership from the government or business sales. Asset […]
An estate freeze is a way to limit tax consequences for beneficiaries by transferring assets to another entity, such as preferred shares, which are not subject to capital gains taxes. This approach can help preserve a business and avoid crippling tax debts. However, beneficiaries may still have to pay taxes in the future as the […]
The fixed asset turnover ratio compares a company’s sales to the value of its fixed assets, indicating how well the company is using its assets. A high ratio can imply efficiency and less investment tied up in assets, but it may not be reliable or informative. The tangible asset ratio excludes intangible assets. It is […]
Asset managers oversee clients’ financial assets, managing stocks, bonds, real estate, and other assets to increase portfolio value while managing risk. They make recommendations on investments, manage real estate, and must be knowledgeable about investment markets and regulations. Asset managers are people responsible for overseeing the performance of their clients’ financial assets. This often includes […]
Real estate asset managers buy, develop, and sell investment properties for clients, focusing on growth and traffic patterns, population growth, and tax implications. They require excellent communication and negotiation skills and a bachelor’s degree in real estate, finance, or economics. A real estate asset manager buys, markets, develops and sells properties on behalf of his […]
Net asset value is a company’s assets minus liabilities. Improving it involves increasing sales or reducing expenses. Accountants use the total debt to total assets ratio to determine how much debt a company uses to finance its assets. Companies can improve their net asset value ratio by reducing debt and improving net profit. Smaller companies […]
