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Fixed Assets: Definition, Benefits, & Examples

Fixed assets are long-term, tangible assets that a company owns and uses in its operations, such as buildings, machinery, and equipment.

Why are fixed assets important?

Fixed assets are essential for a company's operations, enabling it to produce goods or services and generate revenue.

An easy way to understand fixed assets is:

Think of them as the long-term investments a company makes to run its business, like buying a building, machinery, or vehicles that will be used for many years.

Benefits & Examples of Fixed Assets

Revenue generation: Fixed assets, such as machinery or equipment, are used to produce goods or services that generate revenue for the company.

Improved efficiency: Investing in modern, high-quality fixed assets can help companies streamline their operations, reduce costs, and improve productivity.

Competitive advantage: Having superior fixed assets can give a company an edge over its competitors by enabling it to produce better products or services at lower costs.

Collateral value: Fixed assets can be used as collateral for loans, providing businesses with access to financing for growth and expansion.

Our fixed assets, including state-of-the-art aesthetic equipment and facility upgrades, form the backbone of our service capabilities. Investing in high-quality assets has improved our service efficiency and client satisfaction, leading to higher client retention rates.

Frequently Asked Questions

What are fixed assets and how are they recorded in accounting?

What methods are used to depreciate fixed assets?

How do fixed assets impact a company's financial health?

What are the differences between fixed assets and current assets?

How do businesses manage and track their fixed assets?

What role do fixed assets play in securing business loans?

Wayne Yap Minute

Daily newsletter that teaches you how to add $1 million to your business

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Are You Making This Mistake?

After investing over $1.2m in gurus, masterminds and coaching, I discovered that the number one reason people don’t succeed is because they’re following the wrong path.

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That’s why I invested 100s of hours to create this free quiz: So that more people can find the path that’s most suitable for them.

Before we start charging for the quiz in 2025, discover your Archetype for Free by clicking “Start Quiz” below.

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