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Logging capital assets
I bought a laptop using my personal account. This was entered under my expenses as Computer Hardware. This is a capital asset of the business. I was expecting to see it on the Capital Assets Report but it is not. Should FAC understand that computer hardware is a capital asset?
Having looked, I can see that there is a Purchase of Capital Asset in the expense drop down menu but there are no sub categories to show that it is IT hardware. I am also asked for a life span of the asset and don't know what to put there.
Please advise what I should do.
Having looked, I can see that there is a Purchase of Capital Asset in the expense drop down menu but there are no sub categories to show that it is IT hardware. I am also asked for a life span of the asset and don't know what to put there.
Please advise what I should do.
I’m confused
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Inappropriate?Hi
At present you must explicitly declare the expense or bank transaction as Purchase of Capital Asset for it to be included in the Capital Assets view, so you should change the expense type for this expense from Computer Hardware to this.
As for the asset life span, this is one for your accountant although the default of 3 Years is pretty standard for computer hardware.
I’m happy
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Inappropriate?Hi,
I work on a three year life for IT equipment ie 33% is written off as depreciation each year.
With the falling price of laptops and probably a reduced working life due to the low cost of upgrading it is worth considering if a laptop is actually a capital item anyway. I will tend to work on any item costing <£350 as being revenue rather than capital (an expense rather than an asset in accountant's speak). The advantage is that there is full tax relief immediately.
I suggest you ask your accountants what figure they work on to eliminate small items from assets.
I’m confident
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Inappropriate?This is very clever I think - it calculates the depreciation from the purchase date. But I made several hardware purchases so each needs to be re-entered manually under the assets dialogue. If you classify something as computer hardware, would it not make sense for FAC to offer the option of adding to assets?1 Comment
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This answers the question
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see also my post: http://community.freeagentcentral.com... on a related issue
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