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    8 Replies Latest reply on May 18, 2008 4:09 PM by Santa Fe CPA

    putting tools on the books

    t1luke Newbie
      I have a new woodworking business and need to put my large tools on the books,

      I think it goes like this - Table saw, used, est value $800.00 - owner contrubition $$$ to tool asset ?


        • Re: putting tools on the books
          LUCKIEST Guide
          putting tools on the books This is taking me back to school days.

          Are you are Corporation?? Do you have an Accountant??

          My suggestions might be different from your accountant.

          Debit Equipment Credit Capital or Equity

          Next question, LUCKIEST
          1 of 1 people found this helpful
          • Re: putting tools on the books
            Santa Fe CPA Adventurer
            The table saw, used or new, is a depreciable asset with a 7 year life. The offseting entry will be to your capital account. The asset may be eligible fro the Section 179 additional first year depreciation.
            This will apply to any long lived asset.
            At this apparent stage of business for you, I sugggest that any tool costing $500.00 or less be expensed as "Small Tools"
            We do bookkeeping and accounting over the internet via secure systems for businesses across teh country.

            Good lck in this venture.
              • Re: putting tools on the books
                MRFINANCE Adventurer
                Santa Fe CPA is always on the mark! Good job!
                • Re: putting tools on the books
                  t1luke Newbie
                  Santa Fe CPA, Thank you for your input - am I correct about the first entry? owner contrubition to fixed asset? And can you provide more info about your service ?

                  Thanks again
                    • Re: putting tools on the books
                      Santa Fe CPA Adventurer
                      Good Afternoon there, t1uke,

                      The entiries to book this transaction would these: A debit to Fixed Assets and a credit to the Capital Account. The depreication would be booked as a debit to Depreciation Expense and credit to Accumulated Depreciation.

                      My firm provides bookkeeping, tax and accounting services to small abd medium size enteprises across the country. We use and Application Service Provider to host the QuickBooks software that we use (primarlily, as the off the shelf market leader.) but also ahve a Peachtree capability. We work in a "paperless" environment; inout materials and documents are faxed or e-mailed via a secure communications link to my document management service by the client at the end of each business day. The items are then posted to your file overnight by my bookkeeping staff and are available to the client the next morning. Full disclosure, my data entry bookkeeping staff is located ofrtf-shore in Bangalor, India, they are trained accountants. .
                  • Re: putting tools on the books
                    Lighthouse24 Ranger

                    Your profile doesn't indicate where you are located, so this may not be relevant to you -- but it's a "heads up" for anyone. Be aware of the property tax implications. For example, there are no taxes on personal property in my state or local jurisdictions, but the city and county do assess and tax business property (both real and "business personal" property).

                    A neighbor of mine started a photography business out of her home last year and transferred a lot of her personal equipment to the new company. She was totally surprised when she received a business property rendition early this year and realized she had to file and pay business property tax on those items. That's not to say the transfer shouldn't be made -- just that it may add an obligation that some first time start-up business owners overlook.

                    Good luck with your new enterprise. Best wishes.