The Basics of Planning an Asset Recovery Strategy
Digitization is impacting almost every industry, requiring businesses within those industries to become leaner and more agile in their operations. A strong part of moving to this eventuality is having a solid asset recovery strategy in place. This type of strategy allows you to track and recover value from a wide range of assets, from used vehicles to stored parts for your equipment. Here's a quick look at the basics of putting together a solid asset recovery strategy for your business.
Start by figuring out what your assets are and listing them. This can be one of the most difficult parts of the process, as you may have old machinery that's been written off of the books tucked away in a corner of a warehouse that still has value. Take the time to thoroughly go over all of your property to make sure you're accounting for everything.
Consider what you no longer need and will not need in the future. If you have machinery that is sitting idle, getting rid of it may open up valuable production or storage space, allowing you to improve your production or store materials that tend to fluctuate in price in larger quantities and take advantage of larger quantity purchases.
Once you've compiled these lists, spend some time looking at what this type of equipment, down to the manufacturer and model, if possible, is going for online. This will help you determine the value based on international sales, rather than simply the area you're currently doing business in.
Now that you have appropriate figures at hand, calculate the total value of your disposable assets and consider where you might reinvest that money into. Take a little time to find the best options for selling the used assets and make it happen, then grow your business with the new capital.
By taking the time to plan an asset recovery strategy for your company, you can ensure that you're able to leverage those assets to your company's benefit, making the digitization process go more smoothly. But what if you're not sure how to implement an appropriate asset recovery strategy for your business? The experienced professionals at AccountRely can help. Please feel free to reach out today to get connected to one of our business professionals for a consultation.