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.

Carissa Esquibel