Calculating the Fixed Assets Budget


Fixed Assets, also known as Capital Assets, are economic resources that have long lives before they become "used up" or consumed. Unlike current assets which are consumed in less than 1 year, fixed assets generally take more than one year before they become "used up". For additional information on the difference between Current Assets and Fixed Assets, please refer to the section entitled "ASSETS" under the Balance Sheet. Please Note: don't be confused with the term FIXED; it does NOT mean the assets are stationary or immobile.

Examples of fixed assets include; office equipment, office furniture, intangible items, automobiles, buildings, and land.

Office Equipment Office Furniture Intangibles
computers desks patents
projectors chairs copyrights
photocopiers tables industrial designs
scanners dividers etc...
cash register etc...


Automobiles Buildings Other Fixed Assets
cars office building production equipment
trucks production facility Land
vans storage facility mannequins
delivery vehicles etc... shelving


The Fixed Asset Budget consist of Five Parts. They are as follows:

Part 1    Determine the Fixed Assets You Plan to Invest into your Business
Part 2    Determine the Fixed Assets Required for your Business
Part 3    Estimate each Fixed Asset's Deprecation for each Forecasted Year
Part 4    Determine the Accumulated Depreciation of each Fixed Asset Category
Part 5    Determine the Forecasted Current Market Value of each Fixed Asset Category


Categories: Forecasting