Fixed asset categories are a classification system for long-term physical assets owned by a business. These assets may include furniture, equipment, and land that are used for operating purposes and have a useful life of more than one year. Under fixed asset categories, each type of asset is grouped under its own title or subhead to make budgeting, accounting, and tax reporting easier and more accurate. Businesses use these categories to drive decision-making, manage costs, and understand their financial standings. Fixed asset categories help companies make informed decisions about how to best utilize resources and optimize returns.