Tag: personal bookkeeping

Understanding personal bookkeeping for long term expenses

Understanding personal bookkeeping for long term expenses

Business
Personal bookkeeping - Most beginning business people and personal bookkeeping do not full comprehend the differences between expenses and amortized assets. This can be confusing, at first, since these are all items that must be paid for and therefore expensed in a business. However, the easiest way to think of the difference in personal bookkeeping is to think that items that must be amortized – fixed assets – are those items that will be contributing to the business over a longer period of time, usually more than one year. Defining an Asset versus an Expense in Personal Bookkeeping Understanding an item that is a simple expense, and therefore doesn’t require amortizing (depreciating the cost of the asset over more than one year) is another approach. Items that are expensed immediat