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Why you should keep copies of purchase invoices received for fixed assets |
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Written by Nilsson Denver
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Tuesday, 05 August 2008 05:01 |
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A fixed asset is something like a computer or a car. When you buy or lease a fixed asset you should keep a copy of the invoice to know what fixed assets you own. On your balance sheet there is a value for fixed assets, wouldn't it be useful if you knew what made up this figure.
If you pay for something with a cheque always get a copy of the invoice made out to your business with the details of what exactly you bought on it. Don't just have "computer system" have "HP Pavilion 5030 Computer" i.e. be specific.
If there is more than one item being bought make sure each item is listed.
If you are buying something using a credit card, it is the same as buying with a cheque, get an invoice as a credit card slip is not an invoice and you can't claim back the VAT without a purchase invoice.
If you are leasing an item the invoice wont be made out to your business. So ensure you get a copy of the invoice as you and your auditor need to know what you are leasing.
If you go and buy something with your own credit card or pay for it in some way yourself, you still need an invoice if you want it to become a business fixed asset.
In summary
Always get an invoice
Copy each invoice
Place them in a file
Now at the end of your financial year you have all the details for your auditor or accountant so you don't have to go and request copy invoices
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Last Updated on Monday, 04 August 2008 19:48 |
