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The main problem in my experience is on the bean counter side. Depending on the company, when you buy equipment it is an expense for the company (i.e., you don
by mikekchar 11y ago
The main problem in my experience is on the bean counter side. Depending on the company, when you buy equipment it is an expense for the company (i.e., you don't have to pay taxes on the money used for buying the equipment). However, you usually can't (depending on the country/state/province/whatever) declare the entire expense in the first year. You often get it as the value of the item depreciates. Some countries have bizarre rules for depreciation. For example, in Japan, you might get stuck on a 20 year straight line depreciation for a telephone (even if it is a mobile one). So you get 5% of the value as an expense in the first year (tax law is complicated, so I'm just giving you the worst case example -- there are cases where you can get 100% depreciation in the first year as well).
Anyway, each thing you buy, you have to track the depreciation of. You can sell the used item for a loss which means more paper work. Or you can pile the items up until they have fully depreciated. But, basically, it is a huge pain in the back end. If you have an accountant on staff who is already up to their eyeballs, it is not unusual for them to grumble very loudly about having to deal with the developers' obsession for new shiny toys.
If you have a company who is willing to throw money at problems to make them go away (don't try to track the equipment as an expense if you don't have the capacity to do so), then it won't be a problem. But as always, the people problem is far more difficult to solve than the technical problem. Personally, I cut startups some slack if they haven't got all their ducks in a row on small issues like this. YMMV.