LESSON 11: The ever-so-simple notion of ‘Fixed Assets a Articles

LESSON 11: The ever-so-simple notion of ‘Fixed Assets and Depreciation’ that many business owners just ‘don’t get’

 Before we even start this section notice that it is about fixed assets and not about fixed costs. These are completely unrelated subjects, but the similarity of their names can at first glance cause confusion. Fixed assets are things like cars, vans or other equipment. It is essential that you are aware of the generally […]

11.1 What are fixed assets?

 A fixed asset is anything that is intended to be used in the business for a period of years. The key point is it is not consumed immediately, nor in just a few months, so its usefulness extends beyond a year or so, and typically for several years. Examples of fixed assets are cars, machinery, […]

11.2 The clear reason why your fixed assets require special treatment, and what that treatment is

 You need a basic understanding of the following principles. However, unless it is you, personally, who keeps your accounts you certainly do not need to worry about the bookkeeping and accounting mechanics of what follows. Just assimilate the concepts, which are quite simple. Fixed assets are recorded in your accounting system at the amount you […]