Fixed Asset
Also called: fixed assets, capital asset
What is Fixed Asset?
A fixed asset is a long-lived item bought to be used in the business rather than sold — kitchen equipment, furniture, vehicles, computers, fit-outs. Its cost is recovered through depreciation over its useful life.
Why Fixed Asset matters
Fixed assets tie up cash for years, and they quietly disappear from attention once installed. A fixed asset register is the only reliable way to know what you own and what it is now worth.
How Fixed Asset works in practice
Maintain a register with purchase date, cost, location, depreciation method and book value. Verify it physically once a year — small businesses routinely carry assets that were scrapped years ago.
Frequently asked questions
An expense is consumed within the period; a fixed asset delivers benefit over several years and is capitalised.