Showing posts with the label fixed assets

Asset Replacement

After my university hustle days which I have attempted to chronicle here , I started an accounting practice in 2013 and needless to say, very few of the computers, furniture etc I acquired at the start are still in good working condition. The harsh reality is that nothing lasts forever. Not even your favorite macbook pro which you used to launch your digital marketing agency. 😃 The challenge with most business assets is that they lose value (depreciate) over time. When this happens, they eventually get to a state where they are no longer in usable state. Thus, there is a need to repair, overhaul or replace. If one does not manage this very well, the capital outlay required to replace this assets might be as significant as what was required at startup if not more. I have seen many businesses who have made good returns only to die or start operating poorly because their assets stopped functioning optimally and they couldn't replace them. A couple of ideas: 1. Have