Buying Equipment
When a purchase like a laptop or furniture is an asset, and when it is a simple expense.
Some purchases are used up quickly, others serve your business for years. The category you choose changes how the purchase appears in your reports.
Simple rule of thumb
- Small or short-lived items (cables, a mouse, stationery): categorize as Office Supplies. They are expenses.
- Larger items that last more than a year (laptop, phone, camera, desk, chair): categorize as Equipment & Furniture. They are recorded as assets of the company, so they appear on the Balance Sheet.
How to record it
- When the purchase appears in Transactions, open it.
- Set the Category to Equipment & Furniture (or Office Supplies for small items).
- In Description, write what it is and where the receipt is, for example "MacBook Pro for design work. Receipt: Drive 2026-10".
- Click Confirm and save the receipt (see What to Do With Your Receipts).
About tax deductions
Equipment used for the business is usually deductible, but the rules for when and how much you can deduct depend on the item and on your company. Your accountant decides how to treat it on your tax return. Recording it as Equipment & Furniture, with the receipt, gives them what they need.
If you also use the item personally, tell your accountant. Usually only the business-use share is deductible.