3 ms·

Amortisation burocracy is not that complicated. 4 book records and one additional document per year, well under £1 in labour and paper. Source:my dad is a forme

• vetinari 7y ago
  Here, it is 2 records at purchase (purchase+asset creation) per item, 1 every month (depreciation) per item, plus 1 yearly (accounting for deferred tax assets). Then some at the end of the period (reconciliation of the deferred tax, asset retirement). The period has to be tracked per each item. Each asset has to have its asset card and a tag. For machinery and buildings, OK. But for a laptop, that maybe barely survives it's depreciation period? Well, no. Folks have other things to do than paperwork for laptops. The entire point of the asset depreciation is, that the state wants the tax money as soon as possible, and shift your deductibles into future. What you want, is to shift as much as possible of your deductibles into the current year (and it is cash out in this year, after all). I and many others don't see why small, relatively quickly consumable items like laptops should be handled the way big assets are, and the sales at other vendors understand that very well. If you are a small company with external accountant, it will be significantly more than 1 EUR in labor and paper.