Unsure what counts as a fixed asset or business expense? Confused about how depreciation works? This episode will help you better understand important financial terms like fixed assets, business expenses and depreciation. Danielle Hayden walks through when to invest in fixed assets or focus on business expenses, how to handle home office expenses, and more. Listen to gain clarity on what all this means for the growth and value of your business!
Key Takeaways:
Discover the difference between fixed assets and business expenses, their impact on the balance sheet, and how they contribute to long-term business value.
Learn how to manage home office expenses as an S-corp versus an LLC.
Understand capitalization and depreciation, including their effect on the balance sheet and the impact of loans.
Get guidance on making smart purchase decisions that align with your business goals.
It's crucial to maintain records and consistently communicate with your money team in order to effectively manage your business financials.
Topics Discussed:
Fixed assets versus business expenses (1:28)
Fixed assets for a brick and mortar versus online business (3:56)
Determining when to capitalize assets (4:45)
Depreciation basics (7:16)
How loans impact the balance sheet (8:35)
Home office business expenses (10:41)
The role of assets and expenses in building a valuable business (15:45)
Best purchasing practices for small businesses (19:42)
Who on your team is responsible for tracking depreciation? (22:30)
Resources:
Listen to episode 182: 8 Game-Changing Strategies to Boost Your Business's Value!
https://kickstartaccountinginc.com/8-game-changing-strategies-to-boost-your-businesss-value-ep-182/
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