Frequently Asked Questions
Generally, you can consider most computers, electronics, and office equipment as fixed assets. But of course it’s always best to consult a financial professional before making a final call!
“Fixed assets—also known as tangible assets or property, plant, and equipment (PP&E)—is an accounting term for assets and property that cannot be easily converted into cash. The word fixed indicates that these assets will not be used up, consumed, or sold in the current accounting year.” (WIPFLI.com)
Fixed assets must have a useful life of greater than one year, and exceed the corporate capitalization limit. Both hardware and software can be classified as fixed assets. However, many desktop software packages are not expensive enough to exceed the capitalization limit, so this can vary.
It’s a rare business that can operate in this day and age without technology! Internet access, computers, phones, printers, tablets, software, apps, and more are necessary for the vast majority of companies. While we theoretically could run a company without them, would you want to?
Technology’s role has changed over the years, however, from merely operational to highly strategic. Companies are designing their IT roadmaps to drive goals, innovate, and lead change in their industries.
Deloitte’s CIO survey shows how organizations in various sectors are allocating their technology budgets to benefit the business.
Technically speaking, IT support is defined in the Cambridge Dictionary as “technical help or knowledge provided by computing experts…a team or department in a company or organization that provides technical help to people who have problems with its computer systems”.
IT support is for when some piece of technology isn’t doing what it should! Far beyond just computers though, IT support people have a huge range of specialized knowledge from phones to fax machines. If you have a problem, you’ll want to make sure you find someone who has the right expertise. While they’re often very talented, it’s extremely unlikely that one person will have knowledge of every kind of technology!
We recommend replacing business computers about every five years. As technology improves, this lifespan may increase. But due to their heavy usage and evolving business needs, five years is a good estimate for most companies.
Waiting until a computer breaks down to replace it instead comes with many problems, especially in a business setting. They are less reliable which could lead to unplanned downtime. They are out of warranty after 3-5 years depending on the manufacturer, so repairing them will be more expensive. They often run slower, leading to lower productivity. And old computers may become incompatible with the software you use.