Are Your Company's Assets Worth Their Price Tags?

Do you know how much of your company’s money is represented by the assets you own? Additionally, what is the relative value of all those items? Some deliver a better ROI (return on investment) than others. For the vast majority of entrepreneurs and owners, the major categories of assets include multiple items, some tangible and others not.

For transport firms, fleet software is central to earning a steady income. In other organizations, the star of the asset show is computers, vehicles, buildings, and inventory. Here are details about some of the most fundamental categories that every owner should examine and ask is the cost of this asset too high, too low, or just right?

Fleet Software for Transport Firms

Transport company owners employ sophisticated fleet-tracking applications, which are essentially software products that perform critical GPS tracking for fleets in daily operations. The primary benefit is the delivery of GPS location data in real-time scenarios. There is no other industry segment in which the precise physical location of assets is as important as in the fleet transport niche. Supervisors need to know the whereabouts of every truck in order to measure on-time status, fuel efficiency, potential delay incidents, and more. Compared to what the high-end versions of tracking software products cost, users get solid value for the investment. Tracking software for fleets is well worth the cost.

Company Vehicles

In addition to fleet companies, many other kinds of enterprises own trucks, cars, vans, buses, and specialty conveyances to operate their companies. For sale-oriented firms, a small fleet of cars is often the largest asset, by value, a company owns. It’s imperative for owners to oversee the purchase of these indispensable assets. Delivery services, medical organizations, and dozens of other for-profit and not-for-profit entities own one or more vehicles. Cost effectiveness is based on many factors, and it’s usually the purchasing manager’s job to select assets based on fuel economy, safety, and long-term utility. Vehicles can be cost-effective if managers carefully evaluate their options.

Office Buildings

For owners who don’t lease their working space, buildings are usually their single most costly asset. This is particularly true for medium and larger entities that own one or more structures. Is the price of real estate worth it? In some cases, real estate assets can be a worthwhile long-term investment for owners as long as the market is stable. Real estate assets are an iffy proposition for owners. Sometimes leasing makes more sense.

Computers

Computers are the backbone of modern commerce. Without them, very few owners or entrepreneurs could turn a profit. In sectors like financial services, engineering, and insurance, the total cost of a business’s computers can be the single largest investment of all balance sheet assets, with the possible exception of payroll or real estate. However, as long as managers use the right kinds of devices and programs to meet the daily needs of employees, the asset class can deliver a high ROI (return on investment). If owners spend time researching the market and not buying unsuitable devices, computers can be a wise investment and generate long-term income.