To understand fixed asset tracking, let’s begin by defining what a fixed asset truly is. A fixed asset is a long-term asset that a company has purchased and is using for the production of its goods and services. Fixed asset tracking may involve a wide range of assets, from physical objects as large as the buildings you work in, to the furniture or the devices used in day-to-day business processes.
Fixed assets are identified by their lack of liquidity – that is, they cannot be readily converted into cash. Neither are they sold nor are they consumed. Rather, the asset is used to manufacture goods or deliver services over the long term.
