What is Fixed Assets?

Fixed assets are long-term tangible pieces of property that a firm owns and uses to produce its revenue and are not expected to be consumed or converted into cash within the accounting year. Examples of fixed assets include land, buildings, machinery, equipment, furniture, and vehicles. Businesses use fixed asset management systems to track the location, condition, maintenance schedules, depreciation, and book value of these assets. This helps with financial reporting, tax compliance, and operational efficiency.