Capital Expenditures (CapEx) vs Operating Expenses (OpEx)
Purchasing major physical assets (servers, laptops, office furniture) or developing internal-use software requires capitalized accounting. Instead of expensing full costs immediately, assets are depreciated over their useful economic life.
Straight-Line vs MACRS Depreciation Methods
Under US GAAP/IRS rules, hardware assets are depreciated using Modified Accelerated Cost Recovery System (MACRS) 5-year schedules, while European accounting standardizes on 3-year straight-line equipment depreciation (Account 2183 / 6811).
Exporting Asset Journal Entries in Bizohlala
Bizohlala Accounting Exports pre-map fixed asset purchases to General Ledger Account 2180 (Fixed Assets) and depreciation to Account 6810.
How Bizohlala Solves This Automatically
Bizohlala pre-maps fixed asset purchases and depreciation entries to standard general ledger accounts.
Try Bizohlala Free Now →Frequently Asked Questions (FAQ)
Q: Can small businesses write off laptop purchases immediately?
A: Yes. Under IRS Section 179 (US) or de minimis asset rules (€500 threshold in France/EU), low-cost hardware can be expensed immediately.