How To Write Off Material Assets

Table of contents:

How To Write Off Material Assets
How To Write Off Material Assets

Video: How To Write Off Material Assets

Video: 14 Biggest Tax Write Offs for Small Businesses! [What the Top 1% Write-Off] 2022, December
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An important element of the workflow of any enterprise is the various actions performed with material values. Sometimes, for various reasons, they need to be written off. But to protect the owner from abuse, and employees from unfair claims, it is necessary to correctly draw up documentation related to such facts.

How to write off material assets
How to write off material assets

Instructions

Step 1

Determine if the item you have selected is suitable for disposal. For this, the object must be unusable - for example, be broken beyond repair. Also, by decision of the management, obsolete assets, for example, equipment that does not meet modern production requirements, can be written off.

Step 2

Create a commission that will handle the write-off. It can exist on a permanent or temporary basis. It should include the head of the organization (or a person who will replace him), the chief accountant and those who are financially responsible for what will be written off. Also, to write off some types of equipment, which is specially taken into account, a specialist from the state inspection is included in the commission.

After the formation of the commission, it is necessary to issue an official order on behalf of the management with a list of persons included in the control group.

Step 3

Transfer the objects submitted to the write-off to the commission for inspection. Employees in its composition must figure out whether the presented item is really out of date or irreparably broken. They also determine the reason for leaving the written-off things while standing and, if necessary, find a person responsible for this. At the end, they evaluate the object.

Step 4

The commission must draw up an act based on the results of its work. It must indicate the name of the items to be written off, their quantity, as well as the reason for this decision. This document must be signed by the head of the enterprise. He also gives the final permission to write off.

Step 5

Decide what to do with the written-off items. In some cases, they can be sold at a profit for the organization, but more often than not, they can simply be presented to someone who still needs these written-off items. In other situations, it is only possible to destroy what was written off.

Another possibility is the transfer of the written-off for processing. In addition to benefits for the company, it will also benefit the environment.

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