PDA

View Full Version : Accounting - swing press, printer etc



SilentAlf
08-11-2013, 01:01 PM
Hi All,

This may sound like a silly question?

but I was wondering what others put down on there accounts for the following:

1 - Heat swing Press-Mug Heat Press
2 - sublimation printer (Ricoh)
3 - sublimation ink
4 - And if you pay monthly for a website?

do they all come under as materials or consumables? and are they an expense?

Sorry for all the questions

Many thanks, :redface:

harlequeen
08-11-2013, 01:17 PM
The first two should come under capital equipment and the last 2 are consumables. You would expect for the first 2 to attract depreciation, but not the next 2, they are ongoing costs.

SilentAlf
08-11-2013, 01:36 PM
That is brilliant I just wanted to make sure before I added them onto my accounts program. Am I right in thinking that I can claim back the cost of the first 2?

Thank you for replying back to me :)

harlequeen
09-11-2013, 10:07 PM
Only the depreciation will count as an expense against tax as the value of the equipment is an asset for/in the business and would form part of the balance sheet. Depending on how much your equipment costs and what the estimated life span of it gives you the depreciation value.

pisquee
09-11-2013, 11:58 PM
Think of it like this:

The first two pieces of equipment are not used up in making your products (ignoring wear and tear) they remain, and hold some value - ie they are still worth something, and could still be sold again. So in terms of the current value of your company, assets count as part of your worth.

Sublimation ink, once used, all you have is an empty bottle, so not really worth anything, so is consumed in the making of your end product, so could be termed a 'consumable' or 'material' if you're attributing it to the costs on a per-product made basis, or as an ongoing regular cost, as you always have to buy more in on some kind of regular basis depending on how your business is flowing.

The last is a fixed and regular monthly cost, so is definitely an on-going running cost.