If you have purchased an asset with a value of € 450.00 or more, excluding VAT, you are obliged to depreciate it. An asset is something you purchase because your company needs it, such as a machine, office building or van. It is not something you buy for your stock to resell later.
What is depreciation?
Depreciation does not allow you to deduct the cost of the asset from your income (profit) in one go. This is the case with cheaper assets such as a pack of paper. You depreciate more expensive assets in monthly increments, often spread over several years. In both cases you simply book a purchase invoice. By registering something as an investment, your Daxto assistant will start distributing its purchase invoice over a longer period of time.
What is my advantage?
For businesses with relatively low results (profits) per year, depreciation has few advantages. Depreciation does allow your accounts to show better how much you earn. This is because the purchase does not completely reduce the profit at that time. The costs are spread over the year, so your figures are not heavily distorted.
For businesses with relatively high results (profits), depreciation can have additional benefits. Because depreciation reduces profits, you pay less tax at the end of the year. In this case, it may be wise not to postpone the purchase of an asset, but to purchase it immediately when you need it. As a result, you will pay less tax. A bookkeeper or accountant can calculate specifically for you whether this is advantageous.
How do I depreciate?
Your digital Daxto assistant automatically takes care of this for you. After you purchase the asset, you register it as an investment. Your assistant takes care of all the paperwork, draws up a depreciation schedule for you and then takes care of it.
You'll find a summary of your investments and depreciation on every fiscal annual statement. You can also view a current overview at any time via the investment report, which is located next to your results and balance report.