What does FF&E stand for? Is it important for you business?
FF&E stands for Furniture, Fixtures and Equipment. These are movable equipment that have no permanent attachments to the main building structure. These items depreciate over their useful life but are important costs to consider when valuing a company, especially in liquidation.
Keep reading to learn more about FF&E and how it fits into your business.
It would be so safe to say that FF&E is an accounting term. We use it in valuing, selling, or liquidating a company or a building.
FF&A is another term that can be used. That stands for Furniture, Fixtures, and Accessories. FF&E, or FFE, is not part of the contract between the business owner and the building contractor.
Examples of office FF&E include:
Specific FF&E for Restaurants would include:
- Industrial and commercial ovens
- Standing freezers, refrigerators and deep freezers
- Pots and pans
- Tables and chairs
- Steam tables and buffets
- Food storage containers
- Cooking utensils and flatware
- Soft furnishings such as tablecloths, napkins and rugs.
- Miscellaneous items like artwork and decorative objects.
FF&E are items classified as personal property which can be moved when you want to relocate your office.
In most cases, the general contractor is not required to provide any FF&E as part of their contract. The FF&E package is provided by the building owner or an interior designer. It is specific to the type of business operations.
FF&E is also not included in the construction design drawings or blueprints.
If you were to take a completed building project, take off the roof and turn it over. Everything that fell out would be FF&E items. All these items have no permanent connection to the building or utilities.
These items, and the costs associated with them, are essential to the business’ core operations. When valuing a firm, analysts take into account the costs related to FF&E. This is because these assets depreciate over the long-term.
For instance it would be wild to walk into an office and see the staff all seated on the floor. Hence the importance of chairs in an office. This depicts the importance of FF&E in an office.
We would argue that every building has some element of cost related to FF&E.
Thus need to be considered when the owner is thinking about his total cost of construction.
A building project is a significant expenditure for any organization. This would also include everything that goes inside of it, which is all out of pocket for the owner.
To underestimate the total costs of construction can be catastrophic for a business. This creates a financial hole that is very difficult to climb out of.
We at Victory Van identify all the costs associated with FF&E projects. This enables us to have a very clear picture of what is at stake while moving.
FF&E are therefore vital components of a work place and should not be neglected. Call Victory Van Company for more information about FF&E. We are here to help you!
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