Not Everything You Buy Is an Expense

Not Everything You Buy Is an Expense

Bought a laptop for R20,000? Many business owners assume the full amount must be expensed immediately. In accounting, that’s not always the case. Some purchases are assets, not expenses — and how you record them affects your profit and financial statements. This practical guide breaks down fixed assets and depreciation using a simple example showing how an asset bought today can still appear on the balance sheet years later, and how spreading costs over time keeps financial statements accurate.