5 Biggest Bookkeeping Mistakes Fixed: Part Two
Not Capitalizing Things Correctly Let’s say you bought a new equipment for $3,000. Instead of having $3,000 in Office Supplies expense for that computer, you should create a new Fixed Asset. A fixed asset is an item purchased for long-term use that is not likely to be converted quickly into cash, such as land, buildings, and equipment. Capitalizing fixed assets is not only good bookkeeping, it is also required by the IRS. The good news is the IRS now allows you to no capitali