What are fixed assets?

An overview of assets which are purchased for long-term use

Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

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. ๐Ÿ’ป

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! ๐Ÿ”

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

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