In the sixth class of the Practical Accounting Course we are going to understand what amortizations are and why we must take them into account.
I am sure that at some point you have heard of amortizations. But, are you clear exactly what they are and why we should take them into account? Well, that’s what we’ll see in this class.
To do this, we must differentiate between normal assets and investment assets, which are those that are going to lose value throughout the year and are intended to generate value within our business.
This loss of value is called amortization and will have an accounting and tax impact. We see both in the following video:
You see, although it seems complicated, nothing is further from reality. Well understood this concept, all we have to do is apply the standards set by the Treasury and we already have our amortization and our assets updated.
Be careful, because, as we have seen, amortization not only affects investment assets, but also liabilities, which are also depreciable.
The most typical within an online business can be the computer and the mobile. Both will lose value from the moment they leave the store, and this loss must be reflected. A computer that you bought last week is not the same as one that you bought five years ago, right?
I propose you to create a new page in your spreadsheet to keep the amortizations of the assets that you already have. Thus, you will have to incorporate the current value of each asset, and check if it is no longer amortized. If so, we will apply the percentages that the Treasury marks.
As always, you can ask me all the questions that arise regarding this class, through the support tab of the intranet.
Remember that if you will have access to everybody the courses and you can also enjoy everything from .
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