General accounting question;
I'm a bit confused as to what is considered an asset or an expense in terms of equipment. For example; a colour laser printer is an asset, but what about a 99p screwdriver needed for everyday tasks. Is that still considered an asset ?
Thanks
David Simpson
Hi David,
I think the general rule is that an asset is something that lasts for more than a year. However, the tax man will allow you to write off purchases with a small value as an expense. Check with your local tax office or accountant whether your purchase can be treated as an expense.
Cheers
