Fixed assets are tangible or intangible resources that a company owns and uses to generate revenue over a long period of time. These assets are not intended for resale and are expected to provide benefits to the company for more than one accounting period. Examples of fixed assets include property, plant, and equipment, as well as patents, copyrights, and trademarks. Fixed assets are recorded on a company’s balance sheet and are subject to depreciation or amortization over their useful lives. Proper management of fixed assets is critical to a company’s financial health, as it can impact profitability, cash flow, and compliance with regulatory requirements. Effective tracking and monitoring of fixed assets can help companies optimize their use, reduce costs, and ensure compliance with accounting standards. This requires a comprehensive system for managing fixed assets, including processes for acquisition, depreciation, disposal, and reporting. By effectively managing fixed assets, companies can improve their financial performance and position themselves for long-term success.
