Depreciation, in depth.
Practical writing on Australian tax depreciation and the financial decisions it touches, for business owners, accountants and finance teams.
Ratio Analysis and the Invisible Asset Problem
Financial ratios are only as good as the financial statements they are drawn from. When depreciation policy distorts the asset base, it distorts every ratio that contains assets in the calculation.
Your Fixed Asset Register and Your Insurance Policy Are Speaking Different Languages
Basing an insured sum on written-down accounting values is one of the most common and consequential errors in small business financial management. Insured values need to be grounded in current market data, not written-down accounting or tax values.
Your Fixed Asset Register Is a CAPEX Planning Tool. You’re Just Not Using It That Way.
Most businesses treat their fixed asset register as a compliance artifact filed away after year end, but it contains everything needed to forecast future capital expenditure with precision no other document can match.
Key Person Risk Starts With the Depreciation Schedule Spreadsheet
In most accounting practices, one person holds the depreciation knowledge: the spreadsheets, the formulas, the workarounds. When they leave, the problem becomes visible, and expensive.
The Instant Asset Write-off Disposal Trap Nobody Warns You About
Claiming the instant asset write-off drops an asset's tax written-down value to zero, so when it is later sold the full proceeds become taxable income. Modelling the disposal consequence at acquisition, supported by a per-asset fixed asset register, avoids the cash flow surprise.
The rules are complicated. Your depreciation software shouldn't be.
Division 40, Division 43, instant asset write-off, pooling and more, all handled correctly, every time.