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Assets – What do we mean by this?

What are operating assets?

 

Operating assets are nothing more than working materials. Without them, a company would be up a creek. Whether it’s machines, systems, or new media – they help production progress – whether directly or indirectly. Only with their active support is a smooth working day possible at all. It is not for nothing that they are also referred to as the “engine of the company”.

 

The special thing about work equipment, they support production but are not consumed in the process. In this way, they are indirectly involved in the production process. With raw materials, it’s the other way around. They are consumed during production. Thus, they are directly involved in the production process.

 

An example, without the warehouse and production hall of a painting company, its daily business would not be possible. Where else would he perform his tasks?

 

Unlike raw materials such as metal, plastic, or concrete, work equipment is made for long use. They often serve the company faithfully for many years. How long their service lasts depends on two decisive factors:

  • The suitability: does the work equipment meet the requirements for production?
  • The condition: how old is the equipment? And what about the degree of wear and tear?

 

What types of work equipment are there?

 

In principle, we distinguish between two different types of work equipment – intangible and tangible work equipment. In the case of immaterial work equipment, the name says it all. This is not something material, not something tangible. This applies, for example, to patents, definitions, licenses, or concessions. Information and knowledge also count as intangible work assets. The opposite is the case with tangible work assets. Here there is something concrete – something we can touch and see.

This applies specifically to:

  • Vehicles (e.g., company cars, forklifts, loaders, vans).
  • Land and buildings (e.g. production halls, offices, warehouses).
  • Machines (e.g. drilling machines, lathes, milling machines).
  • Factory equipment (e.g. office furniture such as desks and office chairs; hall equipment such as workbenches and shelves; tools such as drills, hammers, or files).
  • Digital equipment (e.g., smartphones, laptops, tablets, hardware, and software).


What are work tools from the finance view?

 

The financial industry has its own unique idea of work equipment. Everything that is indispensable for the ongoing operation of a group falls under the category of work equipment.

This includes all ongoing operating costs in the trades such as:

  • Wages and salaries of employees and cooperation partners.
  • Rental expenses for office and production premises.
  • Deposit costs for office and production premises.
  • Costs for marketing, PR, and advertising.
  • Costs for training measures such as training courses, workshops, and congresses.
  • Costs for consumables such as printer cartridges, paper, and ink.

 

All other purchases that are considered work equipment in the traditional sense are considered so-called investments by the financial world. This applies to machinery, tools, buildings, land, and vehicles, but also to intangible assets such as patents, licenses, and definitions.

 

What are working capital loans for?

 

Whether it’s for the vehicle fleet, expensive machinery, or new software and hardware, operating assets can cost a small fortune. And some companies can’t pay for that small fortune out of their own pockets. But they don’t have to. That’s where an asset loan comes in.

 

With an asset loan, entrepreneurs secure a financial advance for their day-to-day operations. Either they obtain the aid from their house bank or from a development bank. Another alternative, for short-term working resources loans, many corporations also turn to another company. It is not uncommon for companies to offer such loans themselves.

 

This is how the working capital loan is used in the skilled trades:

  • The house bank authorizes the entrepreneur to overdraw the business account for a short time.
  • When purchasing machinery or vehicles, the company receives a short-term loan.
  • The working capital loan supports a new project.

 

 

The problem with accounting

 

Operating assets are considered a company’s fixed assets. Here again, a distinction must be made between intangible and tangible expenses. Tangible expenses belong to the tangible assets of the business.

 

Good to know – If the company itself has created the work equipment, it has no place in the balance sheet.

 

All other work equipment is to be fully depreciated up to the value of 0.0 euros. But there is one exception, defective work equipment that can no longer perform its daily duties satisfactorily is excluded from the rule.

 

Is digital resource management worth it?

 

10 company vehicles, 3 properties, 5 production halls, and vast quantities of tools – who is supposed to keep track of everything? Craftcloud’s digital resource management does.

The software doesn’t just keep an eye on one vehicle or one toolbox.

It sees the big picture. How long will the battery of the electric drill last? How much towing capacity is allowed? When does the warranty on the impact drill expire? And what was that again about the lifting platform?

From now on, it’s not the craftsman who has to rack his brains, but the craftsman software. This leaves time for the really important things in the trade – for good, honest work.

 

Digital resource management – finally order in the administrative chaos

 

The days of the tattered operations manual are numbered. Who is supposed to find their way through the tangled scribbles? From now on, Craftcloud takes over the management of master data and documents. The software creates a detailed profile with barcodes and images of every single piece of work equipment. This means that the object of desire can be found with just a few clicks – even on the road in the company car or on the construction site. Just take out your smartphone, turn on the cloud and you’re done!

 

Mine, his, or hers?

 

Where is the cordless drill again? Who’s on the road with the charger? And who is taking care of the maintenance of the milling machine?

Questions upon questions, for which there is often unfortunately no time in the hectic daily routine. In trade, things have to move fast. There’s no time for speculation.

 

Fortunately, digital resource management clarifies the ownership situation. Thanks to the comprehensive and complete history, the craftsman always knows who has what where, and when. Reservations are also possible. With one click, the desired object is reserved on Cloud.

 

An end to scheduling stress

 

The forklift has broken down again. And when was the last maintenance of the lifting platform? The cordless screwdriver should have been running like clockwork by now. Digital asset management brings light into the darkness. Whether it’s repairs, defects, or maintenance work – schedules are its specialty.

 

Digital asset management – in the thick of things instead of just being there

 

Whether in the office, at home on the couch, or on the road in the company car – with the software from Craftcloud, you are in the middle of things instead of just being there. All it takes to access it is access to the cloud and a functioning technical device. From smartphones to tablets to PC, everything is possible. Space and time suddenly no longer play a role – thanks to the cloud.

 

Further questions? Feel free to contact us!