The Fixed Asset Life Cycle – Entry 2

As we begin to look at the fixed asset life cycle, it makes sense to define it. The asset life cycle represents the varying stages that an asset is processed through, from planning a purchase through retirement from service. Along the life cycle, business practices (procedures) are employed.

For example, budgeting would one, purchasing would be another and so on. Each of these disparate practices functions independently of one another in spite of the fact that they often rely on one another. Furthermore, information is needed and produced at each stage.

The key to improving tracking and managing fixed assets lies in the quality and availability of this information. Collectively, this is referred to in future blog entries as the information flow.

Stay tuned for the next installment.

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