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Business is Running but Savings Are Tight? Understand Fixed Assets More Deeply!
Briantama Afiq Ashari
Have you ever felt like your culinary business is running, sales are up, more customers are coming in—but your business savings still aren’t growing?
The problem might not be that your business is slow, but rather that you haven’t grasped one crucial aspect of financial management: fixed assets.
In fact, fixed assets are a vital component—especially in the restaurant business.
Unfortunately, many small and medium enterprises (SMEs) tend to overlook them. But if you know how to manage fixed assets properly, you can:
- Save on operational costs
- Be more prepared for expansion
- Build smarter business strategies
Let’s start from the basics!
What are Fixed Assets?
Fixed assets are long-term items used in the day-to-day operations of a business. Examples include:
- Kitchen equipment
- Tables and chairs
- POS computers
- Operational vehicles
Fixed assets aren’t items you can immediately sell for cash, but they are the backbone of smooth business operations.
That’s why understanding fixed assets is a key first step toward building a more organized and efficient financial strategy.
A common mistake among SMEs is treating all items as expenses instead of assets.
In reality, if you can make the distinction, you’ll be able to record their value, calculate depreciation, and determine when it’s time to replace or add new assets.
Types of Fixed Assets: Tangible vs Intangible
To level up your understanding, you need to know that fixed assets are divided into two types. First, those that are visible and can be physically touched.
Second, those that are invisible but still hold high value.
Don’t underestimate them—although intangible assets can’t be seen, they hold significant value for your business, especially when it comes to building a brand or attracting investors.
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Asset Management by Section
Fixed assets aren't just about the kitchen. Good asset management also includes categorizing assets by area (section), such as:
- Hot kitchen
- Storage area
- Cashier
- Delivery station
By organizing assets by section, it becomes easier to record, track, and control them.
This also helps reduce the risk of undetected loss or damage.
The Function of Fixed Assets for Your Culinary Business
Source: Freepik
If you think fixed assets are only meant to be recorded, you're making a big mistake.
The function of fixed assets goes far beyond that—they can serve as the foundation for:
- Determining your business value when seeking investors
- Calculating taxes and depreciation
- Preparing neat and accurate financial reports
- Reorganizing your strategy when expanding outlets
For example, if you have three restaurant outlets, you can identify which one is the most asset-intensive.
Is the refrigerator constantly breaking down? Or is it time to replace the ice machine?
With a solid recording system, you can make quick and accurate decisions.
In the end, your business performance will improve, and your efficiency will reach its maximum potential.
Why Should MSMEs Care About Fixed Assets?
Many MSMEs fail not because of a lack of capital, but because of poor asset management. For example:
- Constantly buying new equipment without checking the performance of existing ones
- Forgetting to record depreciation
- Not knowing when assets need to be replaced
If you record and monitor your assets properly, you’ll be able to plan business development gradually and more strategically.
Effective Tangible Fixed Assets Management Tips
Source: Freepik
To keep your tangible fixed assets in prime condition and durable, there are several tricks you can try:
1. Record All Assets Digitally
Avoid manual recording. Use a digital system so that all data can be accessed anytime.
2. Rutin Maintenance
Check the physical condition of the asset every month. Don't wait until it's damaged to fix it.
3. Give Inventory Code
Each asset has a code. So you can track when it was purchased, who used it, and when it was last checked.
4. Use Special Software
Kayak system ESB Core can help monitor all assets, complete with outlet performance reports and stock conditions.
Well, through this way, you can save more on operational costs and avoid unnecessary purchases.
So, What About Intangible Fixed Assets?
Now it’s time to talk about intangible fixed assets. Even though they’re not visible, they play a huge role in your business!
For example, maybe you subscribe to digital systems like a POS app, online ordering website, or even a loyalty program software.
All of these count as intangible fixed assets—assets that can boost your business’s value in the eyes of both customers and investors.
You also need to properly store all documents like patents, software licenses, and business permits.
These aren’t just ordinary documents—they’re valuable assets that can serve as leverage when you’re ready to scale up your business.
Conclusion
Now you know that fixed assets are not something to be taken lightly.
Whether it’s tangible fixed assets like kitchen equipment, or intangible fixed assets like systems and licenses—each plays a crucial role in your restaurant’s growth.
If you're still unsure where to start, begin with something simple: record every asset you own.
Then, learn about their useful life and benefits. From there, you can start building a sharper and more accurate business strategy.
To help manage all of this, you can use ESB Core, a complete ERP solution for the F&B industry.
From financial reports, stock control, outlet performance, to online ordering systems—everything can be monitored in a single dashboard.
Start organizing your fixed assets today—because a strong business isn’t just about high revenue, but also about having a solid and well-managed foundation.
If you want your restaurant to be more efficient and ready to grow, don’t wait—check out all the features of ESB Core now! Contact the ESB team now!
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