Financial Asset Management Key Terms

Capitalize on these financial asset management essentials

By Ann Starr

Financial asset management is one of the most important features of a successful business. This type of financial service can be either done in-house or it can be outsourced. If you choose to do your own asset management, there are quite a few software programs on the market that can help you do this. If you want to outsource this function there are a myriad of firms that provide this service. In either case, it would behoove you to become familiar with some of the terminology you might run across.

Audit services

An audit in financial accounting terms is an evaluation to determine whether or not the information that has been collected and reported on a group of assets is accurate. Financial asset management firms provide audit services often as part of their suite of offerings.
Try: eHow offers advice as it relates to financial audits.

Data integrity

Data integrity refers to the consistency and accuracy of the data stored in a database. Data integrity is one aspect of financial asset management software that you should require.
Try: TechTarget has a definition of the term as well.

Fixed assets

Fixed assets refers to property that cannot be easily converted into cash and includes things such as equipment, buildings, furniture and office equipment to name a few. Asset management firms can assist business owners with managing their fixed assets.
Try: BusinessDictionary.com explains this term.

Depreciation

Depreciation is the process of spreading the cost of an asset over several years. Financial asset management software can help a business keep track of the depreciation on its assets.
Try: Get details on depreciation from principlesofaccounting.com.

Asset-liability management

Asset-liability management (ALM) is an important service offered by financial asset management firms and refers to the process of managing the risks associated with mismatches between debts and assets.
Try: Contingency Analysis discusses this term in more detail.

Whole life cost

Whole life cost is the total cost of ownership for an asset over its lifespan. Financial asset management software can help a business owner manage whole life cost.
Try: A more detailed definition can be found at All Business.com.