017. You Need to Know This Before You Make a Big Purchase for Your Business
Small Business Accounting Made Easy with Catherine Fairweather
English - April 30, 2020 04:00 - 14 minutes - 9.77 MBEntrepreneurship Business Education How To small business accounting bookkeeping taxes irs turbotax quickbooks income tax sales tax accounting software small business Homepage Download Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: 016. How to Hire an Accounting Pro For Your Business
Not all expense is created equal.
Some expense is incurred for products and services that have a finite useful life or cover a finite period: office supplies, the electric bill, employee wages. These are known as operating expenses.
But purchases of equipment, furniture, fixtures, land, and buildings can (and should!) last for several years or even decades. These purchases are known as capital expenses.
It doesn’t make sense to account for the purchase a commercial oven in the same way you would record your purchase of printer paper.
On today’s episode, I explain how to account for your business’s capital expenses.
Check out the show notes at www.catherinefairweather.com/017.