What Is Considered Office Equipment?
Office equipment is the tangible tools and materials used to execute business tasks in the workplace. It includes everyday supplies like pens, pencils and paper stock varieties as well as high-end items such as computers, printers and fax machines. Furniture and fixtures that help furnish workspaces are also considered to be part of this category, including hybrid sit/stand desks and monitor mounts, office chairs, anti-static mats and rugs. Some office equipment is reusable and can be used again in the future, such as file cabinets and folders. Other equipment may need to be replaced or upgraded.
When preparing for tax season, business owners may be wondering what is considered office equipment or what is a qualifying home office expense. It’s important to know the difference between these terms, as they are handled differently on tax forms and affect your business’s profitability.
The distinction between office supplies and office equipment is subtle. Office supplies are traditional office products, such as pens and staplers, that are needed for everyday business activities. This includes writing and recording of communications, janitorial and cleaning, as well as the creation of documents such as invoices and sales receipts. It may also include the cost of shipping materials used for sending goods and services to clients.
On the other hand, office equipment are larger and more substantial items that can be categorized as fixed assets on a company’s balance sheet. These are generally depreciated over a longer period of time than supplies. Some examples of office equipment are computers, desks and printers.
A company’s office expenses are a direct reflection of the image it projects to its customers and partners. It is therefore important to select the right type of equipment and furniture for its work spaces. The selection should not only meet the practical requirements of each department, but it should also complement and enhance the corporate brand.
Some of the larger office equipment purchases that a company makes can have a big impact on its profit margin. For example, a new copier can save a lot of money in the long run as it reduces printing costs by cutting down on paper usage. This, in turn, can lead to less waste and a lower energy bill.
It is important to keep a record of all expenses, both those that are immediately payable and those that are to be depreciated. This will help a company keep track of the amount it pays to purchase and maintain equipment as well as the overall cost of its operations.
The IRS has a helpful list of guidelines on its website for business owners that can be found in its publication 535, which covers topics that include rent expenses, paying employees and the depreciation of assets. It’s a good idea to review this resource when preparing taxes as it can save time and money by avoiding errors in the process. In addition, the more knowledge you have of what is deductible, the more likely it is that you’ll claim the maximum deductions allowed.
