Accounting

What is Fixed Assets?

Fixed assets are long-term tangible assets — property, equipment, vehicles, machinery — that a company uses in its operations and which are depreciated over their useful life on the balance sheet.

Explanation

Fixed asset accounting involves recording asset acquisitions (from purchase invoices), calculating depreciation, recording disposals, and maintaining the fixed asset register. Document processing is significant: purchase invoices for capital items must be identified (not expensed), classified to the correct asset category, and entered into the fixed asset register with the correct purchase price, acquisition date, and depreciation profile. Automation can help by flagging invoices that exceed the capitalization threshold, suggesting asset category classifications based on vendor and description, and extracting the relevant data for fixed asset register entry.

How Rima relates

Rima can help identify and extract data from capital expenditure invoices, flagging items that meet capitalization thresholds for fixed asset registration.

Learn about invoice processing

Related Terms

Depreciation

The systematic allocation of a fixed asset's cost over its useful life.

General Ledger (GL)

The master record of all financial transactions in a business, organized by account.

Invoice Processing

The end-to-end workflow of receiving, validating, approving, and recording supplier invoices.

← Back to Glossary50 terms defined

See it in action

Rima automates the manual document workflows accounting teams spend hours on every week.

Try It For Free Now Book a Demo