Types of fixed assets and what you should track

With businesses and schools having moved people to remote work and learning environments, it became even easier to lose track of equipment. Companies were already losing thousands if not millions of dollars in equipment a year already. This raises the question as to where do you start to stop the loss of all these devices. When it comes to accounting purposes, fixed assets have a specific meaning. These types of assets are physical entities that can include the following: buildings, properties, equipment, and furniture. These also have to have the expectation of being used for longer than one year and be involved in the direct operation of your company.

Example of Fixed Assets

Buildings: Any facility you own. Computer Equipment: Computer, laptops, tablets, servers, etc. IT Software: software you purchase or lease. Furniture: Chairs, table, desks, filing cabinets, etc. Property: Any land or improvement of the land you own. Machinery: Machines used for production Equipment: tractors, mowers, printers, copier, etc. Vehicles: Any car, truck, or bus that your company owns.

You have static items included here such as buildings and land, items that do not move. However, it is still important to know the cost of such items, and know the depreciation on them for tax purposes. All the other items on the list are normally distributed to the company's employees and may not stay in one place. Tracking these items helps the accountability on the items and helps keep track of purchases for tax purposes.

What fix asset aspects should you track?

After you create a list of the different types of fixed assets that you have, it is important to keep the data up-to-date in areas such as who has the item, if it needs maintenance, and what is its schedule like for maintenance.

When tracking assets, the basic information that you should track is as follows:

1. Serial Number

2. Asset ID

3. Purchase Cost

4. Person assigned to

5. Location of asset

6. Warranty expiration

7. AUE expiration(Chrome OS devices)

What are not Fixed-assets?

What ever your company purchases that it does not intend to use for more than a year is not a fixed asset. If your company sells products, those are not fixed assets.

Consumables

Consumables are a type of asset that is not set to return to stock after use. You need to track these so that you can keep a running count of how many you have available. Examples of consumables would be printer ink, printer paper, screw, etc. These are all items that get used that are not able to be reused.

Tracking your assets is very important for running any kind of business. This helps keep up with require maintenance, simplifies calculating depreciation and makes it easier on your tech staff to keep track of items. Find an asset management system that fits what you need to do.

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