Depreciation accounting is used to write off the proportion of an asset or group of fixed assets on a balance sheet over a given period. Assets will depreciate at various rates, from 3 years to 20 years depending on the use of the equipment and its manufacturer recommendations. Items such as furniture, computers, machinery and plant equipment have useful lives of more than one year, so their impact continues on to the following tax years throughout the lifetime of their usefulness.
Once you have received a purchase invoice from one of your suppliers you will need to check all of the details to ensure that there have not been any mistakes. It is always easier to correct an invoice prior to making payment on it and prior to it becoming due. It could be any purchase receipt, for services or goods and can also include utility bills and rent.
Payment of a purchase invoice
It is advisable to always pay your supplier invoices on time.