Those of you who are running a chocolate business or sell your chocolates, what is the time table for your accumulated depreciation on your equipment?
I am have purchased my basic home equipment but right now I am planning to use it just for hobby use, but if the people I share it with like I may turn it into a business and was curious about the depreciation. If you could just tell me how many years and what model you have that would be great.
If you run a business and don't know what I'm talking about feel free to message me. If you're not doing this you could be in a bit of trouble if you ever did get audited and you are technically not paying taxes correctly. That can make the government mad haha!
Depreciation is an accounting function, the calculation of which is derived from a number of business decisions you make WITH your accountant. Depreciation can accrue over a period of years, or can be calculated on a flat/sliding scale and accounted for yearly prior to your business taxes being done.
In a nutshell? There is no one single way of calculating depreciation for equipment.
I understand depreciation, how to calculate, the many different ways of calculating, and how it applies to your; balance sheet, income statement, free cash flows, etc. I am just curious which method people are using.