When buying assets it is important to know the best way to purchase and depreciate to take advantage of tax loopholes. Capital expenses usually include the following assets: buildings, cell phones, computers and software, copyrights and patents, equipment, improvements to business property, inventory, office furnishings and decorations, small tools and equipment, vehicles and window coverings. Below you will find a more detailed account of these depreciation categories.
3 year property:
5 year property:
manufacturing equipment (for apparel)
construction activity assets
7 year property:
Commercial buildings can be depreciated over 39 years while residential rental real estate can only be depreciated over 27.5 years. Expenses incurred for improvements to sidewalks, roads, drainage facilities, fences and landscaping are depreciated over 20 years.
To learn more about Notable Bookkeeping’s tax planning, preparation and research services call us today at 201-937-3428.
Automation of general accounting functions is not only for large corporations, small businesses can reap in the benefits as well. One of the most important costs you should be aware of is the cost of an invoice. Are you or your accounting personnel spending too much time creating and inputting bills and/or invoices into your accounting software? There are many tools that can assist in helping you reduce these general accounting costs but today I will be discussing a feature in Quickbooks Online that aids in the automation of Accounts Payable and Accounts Receivable activities.
Let’s take a look at Quickbooks Online. How much time are you allotting for entering and processing bills and invoices when that time can be used to better serve your customers and increase sales? Did you know that Quickbooks Online has a feature named, “Recurring transactions”, that allows you to automate your fixed bills and invoices. The time saved by using this feature will allow small business owners to optimize their customer satisfaction ratings.
The “Recurring Transactions” feature, allows you to schedule bills and invoices. You can set when you want the invoice to be created and how often it should be distributed (e.g., weekly, monthly, yearly, et cetera ). Great care should be taken of course when creating the template. It is highly advised to only use this feature for fixed bills and invoices.
The benefit for small business owners who use this feature is tremendous. It means less manual entries, which in turn, allows for more time to do more of what they love.
Next time we will discuss the importance of continually assessing your insurance policies to ensure your are properly covered for current and potential business risks.