Let's Talk Fixed Assets
As an entrepreneur the plan to expand your brand by purchasing a store front or Land to build you must understand all of the cost which will be incurred during this process. You will need to update your budget. Increase your forecast of expense because expanding does mean more cost.
The cost of acquiring fixed assets include all amounts spent getting the asset in place and ready for use. For example, freight costs and the cost of installing equipment are part of the asset's total cost. The snapshot below provides a few of the common cost of acquiring fixed assets.
These cost are recorded by debiting the related fixed assets account, such as Land, Building, or Machinery and Equipment. Only cost necessary for preparing the fixed asset for use are included as a cost of the asset.
My mission is to offer the best accounting and operations solutions and tips for entrepreneurs and small to mid-size companies worldwide seeking to close their process gaps with actual solutions.