Bookkeeping basics
Expense or asset?
Supplies vs. equipment — and why it matters.
Small stuff is an expense; big, lasting stuff is an asset. Here's the difference, and why it matters.
- Expense: supplies, software, things used up quickly — deducted now.
- Asset: equipment, a computer, a vehicle — things that last for years.
- Why it matters: an asset's cost is deducted gradually (depreciation), not all at once.
Not sure? Ask the assistant, and check with your accountant for the big-ticket calls.
What happens next — record it the right way and Fulkrum handles the rest.