Asset Management is very different to Asset Accounting, also referred to as Asset Accounting and Modeling.
Asset Management is about increasing wealth over time by acquiring, maintaining, and trading investments that have the potential to grow. These functions are typically per formed by Asset Managers, also referred to as Portfolio Managers or Investment Advisors.
Asset Accounting, or Asset Accounting and Modelling, deals with the recording and reporting of financial information related to a company’s balance sheet, which reports on all assets of a business. The accurate modeling (Strategy, classification, assessment, and implementation) of fixed assets can help a company properly gauge the business’s net working capital for maximum return on asset investment, whereas a clear understanding of between tangible and intangible assets is important when assessing risk and solvency.
“Asset accounting is important at any time, but especially in the tough economic times that company’s face today. At a base level, you want to know where your assets are located and that they are in operation. At a higher level, you need to know that your assets are generating a return for you and your community”.
Mubesko Africa is a consulting practice which offers financial accounting and management solutions, asset accounting, and fraud investigation services to the private and public sectors. Mubesko’s key value lies in the natural convergence of these three disciplines, which provide depth and width to our services.