Fixed assets management

Fixed assets are long-term items that a company owns and uses in its operations to generate income.

Fixed Assets

A fixed asset refers to a long-term tangible or intangible asset that is held by a company for its ongoing business operations. It is not intended for sale in the ordinary course of business. Fixed assets are typically used to generate revenue and provide benefits over an extended period of time, usually beyond one accounting period.

Some examples of fixed assets include:

• Tangible Assets: These are physical assets that can be seen and touched. Examples include buildings, land, vehicles, machinery, equipment, furniture, and fixtures.

• Intangible Assets: These are non-physical assets that lack a physical presence but have value. Examples include copyrights, patents, trademarks, software, licenses, and goodwill.

Fixed assets play a crucial role in a company's operations and are recorded on the balance sheet at their original cost, less accumulated depreciation or amortization. They are subject to periodic depreciation or amortization to reflect their gradual loss of value over time.

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Fixed Asset Types

Fixed asset types refer to different categories or classifications of assets based on their nature and characteristics.These fixed asset types help categorize and manage assets effectively, providing businesses with a clear understanding of their asset base and enabling better financial decision-making.

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Existing Assets:

Existing assets referto the assets that a company currently possesses and holds on its balance sheet. The purpose of existing assets is to support the ongoing operations and growth of the business. These assets are used to generate revenue, provide value, and contribute to the overall success of the company.

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Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been allocated to a specific asset since the asset was put into use. It represents the cumulative reduction in the value of an asset over time.

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Fixed Asset Report

 fixed asset reports serve the purpose of financial reporting, decision-making, asset tracking, compliance, cost control, budgeting, and insurance/risk management. They provide valuable information that helps businesses effectively manage their assets, optimize operations, and achieve financial objectives.

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