Help/Accounting/Equipment and depreciation

Equipment and depreciation

Something that lasts for years, like a van or a chiller, is not a cost in the month you buy it. It goes in the asset register and a small part of its cost is counted each month. That is depreciation.

Screenshots use a fictional business and figures. Select an image to view it full size.

Add equipment

There are two ways, and you only need one of them.

You already scanned the receipt

Open the receipt in Expenses and press Move to assets. It leaves your expenses, joins the register, and keeps its GST claim. This way it is never counted twice.

You have no receipt in SME AI Office

  1. Go to Assets in the sidebar and press Add Asset.

  2. Fill in the name, category, cost, purchase date, how it was paid for, and how many months it will last. You can attach the invoice. Press Save Asset.

    The asset form: iPad and card terminal, Equipment and Machinery, cost S$1,480, bought 2 Jul 2026, paid from the business bank account, depreciated over 24 months.
    The number of months decides how much is counted each month: S$1,480 over 24 months is S$61.67 a month. Open full size
The asset register: iPad and card terminal, walk-in floral chiller (from a receipt) and Toyota Hiace delivery van, each with cost, purchase date, months, depreciation so far and book value.
Book value is the cost less the depreciation counted so far. Open full size

Run depreciation each month

  1. Open the Depreciation tab and press Run Depreciation. Choose the month and press Run Depreciation again.

    Run Depreciation: target month Oct 2026 (this month).
    Every active asset is brought up to the month you pick. Months you missed are caught up. Open full size

  2. Each run is listed. Press one to see what was counted for each asset.

    Depreciation runs: 31 Oct 2026 for October, S$861.67 across three assets (van S$633.33, chiller S$166.67, terminal S$61.67), with earlier months below.
    October’s run, opened. Open full size

Depreciation then shows in your P&L under each asset’s category, and in Expenses as one line a month. Running the same month twice does not count it twice.

Sell or throw it away

In the register, press Sell or write off on the asset. Choose whether you sold it or it is gone, the date, and what you were paid. Before you save, it shows the gain or loss that will go into your P&L.

If you moved a receipt here by mistake, Move back to expenses puts it back, as long as no depreciation has been run on it yet.

Questions

How many months should I choose?

Roughly how long you expect to use it. Many small businesses use 3 years for computers, 5 years for vehicles and furniture. Your accountant can tell you what they prefer; capital allowances for tax are worked out separately.

I bought the equipment before I started using SME AI Office.

Add it with its real purchase date. The depreciation for months before your balance sheet start date is part of your opening numbers, and the equipment appears on your balance sheet at what it was worth that day.

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