Tangible assets that are held for long-term use, such as buildings, machinery, vehicles, or equipment.
Fixed assets, also known as tangible assets or property, plant, and equipment (PP&E), refer to long-term assets held by a business that are not intended for immediate sale. These are physical assets with a useful life of more than one year that are used to support business operations and generate revenue. Examples of fixed assets include buildings, machinery, vehicles, furniture, and land. Fixed assets are recorded on the balance sheet and are typically subject to depreciation or amortization to reflect their gradual wear and tear or loss of value over time. Small business owners rely on fixed assets to facilitate their operations, enhance productivity, and create long-term value for their company. Understanding and managing fixed assets is crucial for maintaining accurate financial records and making informed business decisions.