oboloo Glossary

Fixed Asset Acquisition

oboloo Glossary

Fixed Asset Acquisition

Fixed asset acquisition is the process of acquiring long-term assets for a business. Examples include purchasing machinery, furniture, land and buildings, software, vehicles, or other tangible investments that will be used for a period of more than one year. The fixed asset acquisition process involves researching and evaluating potential purchases to ensure they are necessary and appropriate for the business, negotiating terms, obtaining approvals, managing the payment and delivery processes, and recording details in the books of accounts. By carefully managing fixed asset acquisitions and properly tracking them, businesses can ensure they receive the maximum return on investment from these critical investments.