Many organizations offer varied services to their customers and due to these they will always have different types of office equipment. Both small and large organizations require office equipment in order to provide relevant transactions. Office equipment are part of non-current assets that are reported in the balance sheet and within their relevant individual asset accounts. There are many types of office equipment and the most common ones within a modern office include computers, printers, photocopiers, faxes and telephones. Other offices may require special office equipment, but all these undergo the same treatments when matters of accounting are considered.
Accounting aspects are normally considered during several stages of office equipment. During acquisition of used and new equipment, adequate bookkeeping is necessary so that a business entity is able to maintain its record in a clear manner. Records of costs of purchases should be kept well and separate individual ledgers opened to post such entries. The entries will assist the company purchasing them to keep valid and relevant data, which will of good use in the future. Since equipment are not meant for resale, accounting for them requires somewhat a different way of recording their prices (Asia Plus). Only the cost of equipment from suppliers will be recorded exclusive of the costs of transporting them to the place of use.
Suppliers of office equipment normally supply them on either cash on delivery and credit terms. If supplies are paid for in cash, then accounting entries should affect the cashbook, and the individual ledger accounts. However, if the supplies are being made on credit terms then, accounting treatments will affect two accounts namely creditors’ account and individual ledger accounts because no payment is being made to the suppliers’. Any other additional services on improving equipment fall under categories under accounting.
Office equipment has been known to improve the general running of transactions for many businesses. However, equipment within an office contribute much towards having a better accounting system in place for any given company. Many types of equipment lately have been modernized to those extents where accounting transactions are carried out with minimal time. In addition, there is a lot of accuracy when transactions are being posted into relevant accounts. These office equipment have come to reduce a lot of frauds and errors that have the result of human beings interacting with the accounting records.
Equipment such as computers have been designed to maximize the efforts of just a few personnel while a lot of output is generated. Currently, many business entities run their transactions by use of modern equipment that have modern software programs (Unit Q221). These programs have continued to enable users carry out accurate transactions that have little or no errors at all. Accounting reports at the moment are generated as requested by company managers within the least time possible.
Company can store large amounts of data by using the new office equipment being recommended for use around the world. Issues to do with communication of accounting changes are now easier than before; employees can get undistorted messages instantly. However, some of these equipment are expensive to acquire there are lots of benefits that accrue to end users. Modern office equipment besides making work easier have also improved the levels of skills for various operators of the machines. Basic requirements to operate some office equipment improve knowledge and skills that assist in running enterprises in a better manner.
Finally, office equipment are the backbone of organizations that need to keep track of various accounting events in the system. Line managers and other staff will always make better accounting decisions because most of the equipment assist a lot in providing the exact data required (Energy Answers for business). Office equipment like computers enable companies to assess their performance results so that ways of improvements will be decided for future transactions.
Asia Plus. Importance of Office Equipment. Web. 23 January 2013. 2011. http://www.asiaplusoa.com/content/12-importance-office-equipment
Energy Answers for business. Energy efficient office equipment. Web. 23 January 2013. http://www.aps.com/main/_files/services/BusWaysToSave/OfficeEquipment.pdf