Definition of Fixed Asset Management

Fixed Asset Management is an accounting process that seeks to track fixed assets for the purposes of financial accounting, preventive maintenance, and theft deterrence. Many organizations face a significant challenge in tracking the location, quantity, condition, maintenance and depreciation status of their fixed assets. A popular approach to tracking fixed assets utilizes serial numbered Asset Tags, often with barcodes for easy and accurate reading. Periodically, the owner of the assets can take inventory with a mobile barcode reader and then produce a report. Some tracking methods automate the process, such as by using fixed scanners to read barcodes on railway freight cars or by attaching a Radio Frequency Identification (RFID) tag to an asset.