Are you thinking about purchasing a piece of equipment for your business?
A piece of equipment (also known as a fixed asset) is used in the operations of a business. They provide long-term financial benefits, have a useful life of more than one-year and are classified as property or equipment on the Balance Sheet.
An example of some fixed assets can include buildings, computer equipment, software, furniture, land, machinery and vehicles with a threshold of $2500 or greater.
Are you considering purchasing a fixed asset and unsure whether your cash flow can handle the additional debt? Do you need financial statements ready to give to your banker? Talk to your bookkeeper today.