In this video, I walk you through understanding your assets, specifically focusing on the depreciation schedule from the report your accountant provided. We look at Bob’s demo accounts, where we see that his new car, purchased for $30,000, is recorded at $26,087 due to GST claims. I explain how assets over $1,000 are depreciated over their useful life, with vehicles depreciating at 30% per year and laptops and phones at 50%. It’s crucial to remember that if you sell a vehicle, the difference between the sale price and the book value will impact your profit and tax. Please keep this in mind when managing your assets and consider the depreciation allowances for future replacements.
Understanding your asset schedule
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