Asset Accounting Entries refer to the financial transactions associated with a company’s tangible or intangible assets. Brought about by daily operations, these entries document purchases, replacements and disposals of various asset types, such as property, equipment and inventory.
These entries are used to accurately track fixed asset costs in order to maintain fiscal authority over their use — helping a business avoid spending too much for purchases, repairs and maintenance. Asset Accounting Entries form an essential thread of data which allow organizations to make informed decisions on where and how best to allocate resources.