Fixed asset management is a key component of financial and operational management within businesses. Fixed assets, also known as tangible assets, include property, equipment, machinery, vehicles, and infrastructure that have a long-term useful life. Effective fixed asset management involves acquiring, tracking, maintaining, and disposing of these assets to maximise their value and support accurate financial reporting.

1. Asset Acquisition and Recording Fixed asset management begins with the acquisition of assets through purchase or construction. Proper recording of these assets in the accounting records is essential, including their cost, useful life, depreciation method, and any related expenses such as installation or transportation costs.
2. Depreciation and Asset Tracking Fixed assets depreciate over time due to wear and tear or obsolescence. Managing depreciation schedules accurately is crucial for reflecting the decrease in asset value over its useful life. Additionally, tracking assets throughout their lifecycle, including location, maintenance history, and usage, helps ensure optimal performance and compliance with regulatory requirements.