{"id":14320,"date":"2023-09-13T13:47:44","date_gmt":"2023-09-13T19:47:44","guid":{"rendered":"https:\/\/limblecmms.com\/?page_id=14320"},"modified":"2025-04-07T11:10:27","modified_gmt":"2025-04-07T17:10:27","slug":"fixed-asset-management","status":"publish","type":"page","link":"https:\/\/limblecmms.com\/learn\/definitions\/fixed-asset-management\/","title":{"rendered":"Fixed Asset Management"},"content":{"rendered":"

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Fixed Asset Management<\/h1>

Everything you ever needed to know about fixed asset management.<\/h2><\/header>Free CMMS Buyer's Guide<\/span><\/a>\n
\n \n <\/span>Last updated on April 7, 2025<\/span>\n <\/span>\n bBrinton<\/span>\n <\/span>\n <\/div>\n\n [\/vc_column][\/vc_row][vc_row kd_background_image_position=”vc_row-bg-position-top” css=”.vc_custom_1687442797424{margin-top: 40px !important;}” el_class=”limble-page-blog-width”][vc_column][vc_column_text]<\/p>\n

What are fixed assets?<\/h2>\n

Fixed assets generally have a <\/span>long asset lifecycle<\/span><\/a>. <\/span>Investopedia<\/span><\/a> offers a great definition:<\/span><\/p>\n

\u201cA fixed asset is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income. Fixed assets are not expected to be consumed or converted into cash within a year. Fixed assets most commonly appear on the balance sheet as property, plant, and equipment (PP&E). They are also referred to as capital assets.\u201d<\/span><\/p>\n

In a car factory, various assets are used to assemble the vehicle. The raw materials include different metals and various other components. They have a limited life in manufacturing facilities as they are consumed fairly quickly. Because of that, raw materials are classified as part of <\/span>the current assets<\/span><\/a>, not fixed assets.\u00a0<\/span><\/p>\n

On the other hand, robotic arms used for assembling cars, the land on which the factory is built, and the plant structure built on top of it all have a long expected lifetime. So we can classify them as fixed assets.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=”middle” kd_background_image_position=”vc_row-bg-position-bottom” kd_top_separator_style=”skew-left” kd_top_separator_height=”separator-height-small” kd_bottom_separator_style=”skew-left” kd_bottom_separator_height=”separator-height-small” kd_top_separator=”true” kd_bottom_separator=”true” css=”.vc_custom_1682969636891{margin-bottom: 40px !important;padding-top: 120px !important;padding-right: 40px !important;padding-bottom: 50px !important;padding-left: 40px !important;background: #dde4e8 url(https:\/\/limblecmms.com\/wp-content\/uploads\/cta-laired-hex-4.webp?id=9077) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;border-radius: 0px !important;}” css_tablet_landscape=”.vc_custom_1682969636891{padding-bottom: 80px !important;}” css_tablet_portrait=”.vc_custom_1682969636891{padding-bottom: 80px !important;}” css_mobile=”.vc_custom_1682969636892{padding-bottom: 80px !important;}”][vc_column][vc_row_inner kd_background_image_position=”vc_row-bg-position-top”][vc_column_inner]

The Essential Guide to CMMS<\/h2>
Download this helpful guide to everything a CMMS has to offer.<\/h6><\/header>[\/vc_column_inner][\/vc_row_inner][vc_row_inner content_placement=”top” kd_background_image_position=”vc_row-bg-position-top”][vc_column_inner width=”1\/2″ css=”.vc_custom_1631866454223{padding-right: 50px !important;padding-left: 0px !important;}” offset=”vc_col-lg-6 vc_col-md-12 vc_col-xs-12″ css_tablet_landscape=”.vc_custom_1631866454223{padding-right: 0px !important;}” css_tablet_portrait=”.vc_custom_1631866454223{padding-right: 0px !important;}” css_mobile=”.vc_custom_1631866454224{padding-right: 15px !important;}”][vc_raw_html]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[\/vc_raw_html][\/vc_column_inner][vc_column_inner width=”1\/2″][vc_single_image source=”external_link” alignment=”center” css_animation=”fadeIn” custom_src=”https:\/\/3975608.fs1.hubspotusercontent-na1.net\/hubfs\/3975608\/Content%20Downloads\/CMMS%20Guide%20mockup.png”][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row kd_background_image_position=”vc_row-bg-position-top” css=”.vc_custom_1687442797424{margin-top: 40px !important;}” el_class=”limble-page-blog-width”][vc_column][vc_column_text]<\/p>\n

Table of Contents<\/span><\/h2>\n

What is fixed asset management?<\/span><\/a>
\nCommon FAM challenges<\/a>
\nFixed asset management best practice<\/a>
\nUse CMMS as your fixed asset management software<\/a>
\nFixed asset management on auto-pilot<\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row kd_background_image_position=”vc_row-bg-position-top” css=”.vc_custom_1687440273251{margin-top: 40px !important;}” el_class=”limble-page-blog-width”][vc_column][vc_column_text]<\/p>\n

What is fixed asset management?<\/h2>\n

Fixed assets are procured with a large capital outlay. <\/span>Increasing the useful life of such assets<\/span><\/a> is part of prudent financial planning. <\/span>Fixed asset management (often abbreviated as FAM)<\/b> is the discipline that tracks, manages, monitors, and maintains fixed assets.<\/span><\/p>\n

Earlier, fixed asset management had to rely on physical record-keeping and paper trails. This was cumbersome, time-consuming, and prone to errors. Today, various software tools are used to streamline asset tracking<\/a> and maintenance work.<\/span><\/p>\n

The key objectives of fixed asset management are:<\/span><\/p>\n