Assets and liabilities are three inherent parts of the financial performance of an organisation or individual. They are the key indicators used to determine financial health. Asset is anything that you own and has a value. It can include investments, receivable accounts, technology, land, property, etc. Liability on the other hand is something that you owe to others. It can be a debt, bank loan, unpaid bills and salaries, among others. Liabilities are a part and parcel of one’s financial life. It is necessary to manage liabilities at a personal level. Personal liabilities can include pending credit card bills, mortgages, loans from banks, etc. They can turn harmful if not kept in check. This is where liability management comes into play.
Liabilities play a crucial part in your financial wellbeing. It is necessary to keep a track of liabilities and take steps to maintain a balance between assets and liabilities. Liability Management involves planning for risks that arise suddenly out of nowhere. It is a combination of risk management and financial planning as it includes both mitigating risks and strategically protecting assets and reducing liabilities.
The debts which are due within the period of one year are current liabilities. For example, interests payable, income tax, etc.
Also known as long term liability, these include the debts or loans that are due after the period of one year. They are critical to long-term plans and can have serious implications if not properly managed. The list of non-current liabilities includes mortgages, leases, bonds, etc.
This type of liability is characterised by uncertainty. It is a possible liability that may arise due to an unforeseen future event such as a legal case, recession in the market, rising interest rates, etc.
Liability management focuses on long-term stability through practices like maintaining liquidity requirements and managing credits. Managing liabilities comes with a twofold benefit of risk reduction and risk mitigation. Therefore, it might seem a tedious process with a multitude of aspects to consider and intense competency requirements. Poshway can lead your way in building smart and valuable liability management strategies.
Poshway Consultants and Co. comprises a team of finance specialists who provide customised liability management solutions to corporations as well as individuals. Our expertise lies in conducting thorough research of your assets, liabilities and equity in order to identify the best strategies and provide tailored solutions that promote long-term financial stability. We closely examine the balance sheet for a corporate and evaluate finances to discover the gaps and analyse risks. We navigate through the various types of risks an organisation can possibly encounter like credit, currency, interest rate, market and liquidity risks and formulate an integrated financial plan.
Our experts stay up-to-date with market fluctuations in the market and produce reports that meet high accuracy standards. Various factors like strategic allocation of assets, risk forecasts and regulatory practices have to be studied in order to design a comprehensive liability management plan. With our upgraded knowledge and advanced softwares, we work towards managing your liabilities so that you move forward on the path of success without any hindrances.
Poshway deviates from narrow traditional methods of risk-based planning and instead offers comprehensive plans. We undertake continuous examination of your financial behaviour to suggest adjustments and caution about potential risks.
Liability management is a long-term process of assessing assets and liabilities to maintain a balance between them which is necessary for sustainable growth. Mainly the procedure contains 4 stages:
Assets and liabilities are the building blocks of any financial roadmap. We surf through the information shared to gain a complete understanding of finances. Our experts analyse the short-term and long-term liabilities along with investments and insurances.
Our experienced officials formulate personalised financial plans by leveraging the handpicked suitable methods for individuals. We ponder into various types of potential risks and design strategies to combat them effectively. Our integrated financial plan will guide you towards maintaining a balance between assets and liabilities to emerge as a risk mitigator.
Once the plan is ready, we hold a consultation session with the client to explain the strategy in detail. It is in the form of a discussion where the clients share their opinions and ask queries.
In its essence, liability management is a long-term continuous process. This is because situations evolve continuously as it scales in the market. Assets and liabilities have to be constantly checked and planned for. Our team monitors your accounts meticulously and provides value-adding guidance regarding your financial structure. We take care to secure your assets and evaluate the germinating risks. The plan is regularly revised and updated according to the demands and macro-level market situation.
Liability management is an intricate process that holds immense importance in the financial stability of an individual or business. It is equally essential for individuals to keep a check on their liabilities so that they don’t pile up causing financial discrepancies. Poshway can assist you in managing your assets and liabilities in a systematic way so that you accentuate your profits and continue on the path of sustainable growth.