Fixed assets, whether you are a professional services company or a retailer, are the same. However, for the sake of staying more focused, I will focus on professional services. Fixed assets are assets purchased by the business for long-term use to support ongoing business operations. For example, fixed assets are laptops, desks, and trucks, just to name a few. This is where the distinction between inventory assets and fixed assets becomes important and obvious. Since fixed assets have a longer lifespan and will be used for multiple projects and accounting periods, GAP dictates a different accounting procedure than would be used for inventory management. According to GAP, fixed assets are part of the non-current assets of the balance sheet. Which, in simple terms, means the asset probably won't turn into cash within a year. As a result, their purchase price must be amortized over the useful life of the asset and the asset must also be depreciated during its useful life. If that seems like a lot, we still haven't explained how credits and debits occur in the fixed assets balance sheet and I promise you it's more complex than inventory management. So I'm going to save you some time without going into detail about it.