When deciding what equipment is needed for your office, you must consider both the requirements of your business and the types of work you want to do. There are many essential pieces of office equipment that most businesses will need, such as business printers, collaboration tools, telephone systems and kitchen supplies (such as a coffee machine). In addition, you may need to purchase furniture for your workspace.
You may also need to consider what type of computer software your company requires and how much space you will need for the monitors you are purchasing. Typically, most companies will need monitors that are between 19-34″ and have a high resolution of at least 1024×768. If your company does graphic intensive work, then you will want to get more high-resolution monitors that are 4K or higher.
In accounting terms, the line between what is considered expenses and what is considered equipment can be blurry, especially if you have employees who work from home or travel frequently for work. In general, any expense that aids the business in its operations will be classified as an office expense, which includes items like computers, tablets, desktops and laptops. This also includes any software or programs that you and your employees will need to complete your daily work tasks.
Some expenses will be considered more than just an expense and can be categorized as an asset, which are depreciated over time. Examples of these include the cost of a telephone system, an office desk or file cabinets. These assets are often recorded in a fixed asset account, which is paired with an accumulated depreciation account to track the depreciation on those items.
A few other things to keep in mind when deciding what is considered office equipment are whether the item you are purchasing is consumable or non-consumable and how long you will need it for. For example, paper, ink, pens and pencils will all consume over time and should be purchased regularly as an office supply and expensed as they are consumed. On the other hand, a printer can be used over an extended period of time and will not need to be replaced, so you may choose to record it as an asset.
Lastly, you will need to decide how much you are willing to spend on each piece of equipment. In most cases, you can find the same piece of office equipment at different price points and should be able to make a decision based on what will suit your needs best. If you do end up purchasing an expensive piece of office equipment, it will be important to budget for it and create a plan for how the cost will be paid over time. This will help you avoid over spending and stay within your business’s budget. This will help you keep your finances in order and ensure that your employees have the necessary resources to do their jobs well.
