What's the Difference?
These three categories are often and easily confused! It's important to correctly classify your office expenses, supplies, and equipment to make things easier for tax time.
These three categories are often and easily confused! It's important to correctly classify your office expenses, supplies, and equipment to make things easier for tax time.
Here's a breakdown:
OFFICE SUPPLIES + SMALL EQUIPMENT (Expense Account)
These are tangible items you need to refill - think staples, paper, printer ink, pens, coffee, uniforms, etc. Small equipment purchases that are generally under $2500 can also be categorized here since they are not material.
OFFICE EXPENSE (Expense Account)
This covers most other business expenses that are necessary to function and are often intangible. For example - utilities, software subscriptions, accounting software subscriptions, postage, cleaning services, etc.
When creating your chart of accounts, you can choose to either differentiate office supplies from expenses, or group them all into one expense account. That being said, it can be nice to see everything clearly and distinctly separate.
OFFICE EQUIPMENT / FURNITURE (Fixed Asset)
Any big equipment or furniture pieces that are generally over $2500 and are being used for more than one year. Examples include computers, major software programs like Photoshop, desks, printers, etc. These are all individual fixed assets that cannot be 100% expensed in the year they were bought.
Ask your accountant at the end of the year how these should be expensed. In the meantime, you can create a 'Office Equipment + Furniture' fixed asset account to keep track of all office asset purchases for the year.
There you have it - a rundown on the difference between office supplies, office expenses, and office equipment! Let me know if you have any additional questions, I'd be happy to answer them for you.
-Adrienne
Furniture and office equipment are key elements for your workspace to be perfectly functional. Do you have everything you need?
Furniture fulfills two important functions: it helps collaborators to carry out their professional tasks and, on the other hand, it reflects the values and image of the organization.
Meanwhile, the office equipment is made up of all those devices or assets necessary to carry out the company's operations.
The characteristics of the furniture and equipment of an office influence the working environment and productivity.
Choosing the furniture is not such a complex decision if we take into account certain fundamental features.
Make the most of office furniture
We know that wherever we have our office, we need space to work. A desk and a chair are the main elements, but other elements are no less important.
The first thing to consider is that the furniture must be chosen according to the needs and functions of the users who will occupy it, taking into account its use so as not to have more or less than what we essentially require.
Now, what are the essential furniture of any office and what characteristics should they have? Find out below:
Other considerations...
A workstation usually has a desk, chair, lamp, filing cabinet, garbage can, and sometimes armchairs, shelves, or bookcases.
But how do you integrate office equipment and furniture for better results?
Since the technology is basic, everything should help a better disposition of computers, printers, scanners, and lighting elements. False backgrounds or gutters are used to hide cables, for example.
In this sense, electrified furniture with voice and data conduction offers greater functionality and security for users. In addition, the furniture must offer supports and shelter for these devices, too.
The most important thing is that the arrangement and installation are efficient to get the maximum benefit.
Tips for equipping the office correctly
When choosing office furniture and equipment, we must ensure that they are ergonomic, functional, mobile and adaptable.
Not to mention that it is advisable to constantly check that they are in good condition and continue to be useful.
For the furniture that the paint is not damaged, that resist the change of temperature and support the weight; that they are clean and ordered. For the equipment, that it is updated and works correctly.
Also, it is important that the location and distribution of both are planned thinking about the present and future, because, if your template grows or you must move, you must modify them.
Another recommendation is that you can customize your workspace with art pieces, plants, and other decorations to stimulate creativity and give it a unique touch.
However, it is possible that after reading this information you will come across another important decision: renting or buying office furniture and equipment? In this article, we explain the advantages and disadvantages of both options.
Before deciding on office furniture and equipment, you should know what your collaborators think about current furniture. Did you know that this could have an impact on staff satisfaction and productivity?