An asset ledger is one of an important books of accounts
listing the various assets owned by a company. An asset ledger depicts the
financial stability of the company and also what an organization is worth at
any given point of time.
Companies are outsourcing preparation and maintenance of Asset ledger for
quicker and more accurate information.
There are three major types of assets:
Current assets: Assets that can be converted into cash
within a period of one year are known as current assets. These assets are
have a high liquidity. Cash, investments, accounts receivable and
inventories are a few examples.
Fixed assets: Assets that cannot be converted into cash
within a period of one year are known as fixed assets. Such assets are used
for longer period and do not have a high liquidity. building, Vehicles,
Plant and Machinery are a few examples.
Other assets: Assets which are meant for long term use but
are intangible may fall under this category. Goodwill and deposit on a lease
are a few examples.
Benefits of Outsourcing Asset Ledger Maintenance
- An organization can know about the position of its assets any time.
- It can also know its liquidity and solvency status at any point of
time.
- Manpower can be used for other more important processes.
