What is capital asset management

What is a Capital Asset?

Capital assets can be defined as the assets that include properties such as stocks, bonds, homes and investment, etc. For businesses a capital asset can be defined as an asset which has lifespan of greater than one year and is not intended for sale amid their lifespan. It can also define as anything which one owns for investment motive. It excludes money received from the rent and from the selling of the property.

Example of Capital Asset:

If one organization purchases a PC to use in its office, the PC is considered capital asset but if the company sells it then it will be known as inventory.

Capital Asset Management Software

Capital Asset Management is required to reduce money risk, increase benefits and provide palatable levels of service to clients in a supportable way. Tracking capital asset is very important for the organization. Nowadays many organizations use asset tracking software which helps the organization to track their capital assets.

Capital asset tracking software permits organizations to track the information about the assets such as what assets it owns. It also checks depreciation and cost amount of each asset and transactions checked out, date, and audit history etc.

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