Oates and Company Blog

Your fixed assets – machinery, chairs, computers, software, and even buildings and land – are things you use every day and barely notice, but without which your business couldn’t operate. They are investments in your vision, in your people, and in your bottom line. That investment costs money and maximizing return on that investment is just as important as producing a good product.

How do you maximize a return on fixed assets? You already know that fixed assets have a life cycle, especially in the tax world. Managing that life cycle is integral to keeping your assets paying you instead of repeatedly paying for them. 

Fixed asset accounting deals with recording, tracking, and disposing of fixed assets such as buildings, real estate, vehicles, and equipment that represent the ‘big-ticket” items bought or acquired by an enterprise. In a very large company, a dedicated fixed asset accountant is on staff, while in smaller companies, the regular accountants/bookkeepers might have the fixed asset responsibilities incorporated into their job description.

Fixed Asset Responsibilities

For any company, across all industries, assets like land, buildings, transportation, and manufacturing and computer equipment represent the largest investments made. Establishing the highest standards of depreciation accuracy and best practices in fixed asset accounting management will pay off in savings and efficiency and reduce losses.