Assets
Occasionally, you might buy larger company items like laptops or tablets. As these items have a longer life and are typically worth more than £200, they are classed as assets instead of expenses.
What is an asset?
In general terms an asset is an item that is purchased for prolonged use by the company – for example a new laptop or office chair would typically be classed as an asset, whereas printer paper or ink wouldn’t.
Asset vs expense
It’s important that you classify your expenses and assets correctly – there are two simple questions to ask yourself when making a purchase:
Will the item have a useful life of more than one year?
Does the item cost more than £200?
If yes it’s likely that the purchase is an asset. If not, it’s likely the purchase is an expense.
Recording an asset purchase
To record the purchase of an asset:
Select ‘Create new record’
Choose ‘Expense’ as the transaction type.
Select the appropriate category, sub-category and entry
Fill in the relevant information and select the ‘Does this record have an item costing £200 or more?’ checkbox
Save
Recording an asset sale
To record the sale of an asset:
Select ‘Create new record’
Choose ‘Income’ as the transaction type.
Select ‘Other sales & income’ as the Entry
Fill in the relevant information and select the asset you’re selling from the ‘Are you selling an item (asset)?’ drop-down
Save
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