What is a Fixed Asset?
Generally a fixed asset (also referred to as capital assets, plant and equipment, nonliquid assets) is something that is:
purchased by a company,
is going to last for more than year,
was purchased with the intention to use it to generate further income for a company.
More specifically you can think of these as things like laptops, phones and tablets. 💻
What is a fixed asset for your company can differ depending on your business model.
If you are in the business of selling appliances, then purchasing a fridge may not necessarily be a fixed asset, this would be inventory (or stock). If you are in the business of selling chicken wings, and needed a fridge to hold your stock, then this would be a fixed asset! 🐔
If you are unsure whether what you have purchased qualifies as a fixed asset, then please reach out to our talented team of qualified accountants who are always on hand to offer expert advice as and when you need it.
What do I do with Fixed Assets in Ember?
If you have purchased a fixed asset, then you would reflect this in Ember by categorising this transaction to a fixed asset code.
There are several fixed asset codes within Ember as follows:
NB: This article does not cover intangible fixed assets