What does it mean when your accountant says he’ll ‘write if off’.
Accountants write off everything that costs less than $6500 if you’re a small business with a turnover of less than $2m per year. We ‘expense’ it. You might think that when buying something such as a laptop computer (cost $5000 ex-gst) that you’re buying an asset but your accountant will write it off. It will be an expense of the business in that financial year and the whole cost will be claimed as a tax deduction, that year. If he didn’t write it off, it would be an asset, not an expense and would appear as an asset in the Balance Sheet. As such it would be depreciated over a period of time thus apportioning the expense over a number of years. This is still a viable alternative and can be used instead of writing it off in total, in the current year.
Contact Rapid Entry to determine which strategy is right for your situation.