Most fixed assets have a long-term life cycle.
“A fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E). They are also referred to as capital assets.” – source: Investopedia
In a car factory, various assets are used for a vehicle’s assembly. The raw materials are different metals and other components. They have a limited shelf life in the manufacturing facilities as they are consumed quite quickly. Therefore, raw materials are classified as current assets, not fixed assets.
On the other hand, robotic arms used for assembling cars, plus the land on which a factory is built, and the plant structure built on top of it, have a long-term expected lifetime. Therefore, we can classify them as fixed assets.
These are a few challenges that need to be overcome in your journey of fixed asset management: –
We, at Rebin Infotech, can prevent your company from facing all these challenges by yourself and are always ready to extend a helping hand in your fixed asset management journey, by implementing the right software and following best practices.
Get Started with a fully functional CRM to capture more leads and close more deals.
Thinking of being the next big startup or Want to discuss your dream project with someone in a confident manner? Our team will help you brainstorm your idea & bring your project to life. We’d love to hear the amazing thing you plan to build and help you grow your business.